{"id":21730,"date":"2024-04-17T07:30:41","date_gmt":"2024-04-17T11:30:41","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=21730"},"modified":"2024-04-17T07:30:41","modified_gmt":"2024-04-17T11:30:41","slug":"whats-next-for-this-300-billion-giant","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/whats-next-for-this-300-billion-giant\/","title":{"rendered":"What\u2019s Next for This $300 Billion Giant"},"content":{"rendered":"

Editor’s note: <\/strong>Today, we’re handing the reins to colleague Larry Benedict – a market wizard and legendary hedge fund manager.<\/p>\n

He’ll explain what’s next for a $300 billion giant that’s rallied nearly 90% since its December 2022 lows…<\/p>\n

Here’s Larry…<\/p>\n

\n

After a near-90% rally from its December 2022 low, Salesforce (CRM)<\/strong> consolidated from July through October 2023.<\/p>\n

The customer relationship management giant’s rally resumed when the broader market took off again in November.<\/p>\n

From its October low to its all-time high in February, CRM rallied 64%. That move saw its market cap top out at over $300 billion.<\/p>\n

But after peaking in February, CRM has drifted. Momentum progressively dwindled.<\/p>\n

So now CRM is testing multiple important levels. Let’s check what could happen next…<\/p>\n

Three Phases<\/h2>\n

In the chart below, the 50-day Moving Average (MA, blue line) shows three main movements.<\/p>\n

First, we see the rally up to its short-term peak in July (‘A’). Second, CRM retraced through October. And third, there’s the rally that resumed in late October and took CRM up to its all-time high (‘B’).<\/p>\n

<\/p>\n

Salesforce (CRM)<\/strong><\/p>\n

\"Image\"<\/p>\n

Source: eSignal<\/em><\/p>\n

As the chart shows, both rally phases coincided with bullish signals:<\/p>\n

    \n
  1. \n

    The 10-day MA (red line) crossed above the 50-day MA with both MAs trending higher. (The rally up to ‘B’ was stronger than the rally up to ‘A.’ We see that in the steeper angle of the MAs.)<\/p>\n<\/li>\n

  2. \n

    The Relative Strength Index (RSI) moved in the upper half of its range (above the green line). That showed CRM’s positive momentum.<\/p>\n<\/li>\n<\/ol>\n

    Additionally, the rally phase from late October occurred as the blue MACD line crossed above the orange Signal line. Both then rallied strongly from below the zero (0.00) line.<\/p>\n

    During CRM’s rally, though, we see a growing divergence between the CRM stock price (upper orange line) and the RSI (lower orange line).<\/p>\n

    CRM rallied through March 1. But the RSI peaked back in early December and steadily trended lower.<\/p>\n

    And since early this year, the RSI has repeatedly tested support throughout its downtrend.<\/p>\n

    That support level held until late March. But it has increasingly come under pressure – and it recently broke below support.<\/p>\n

    This continued decline in momentum has pulled CRM down from its March 1 peak. And now it is facing further pressure.<\/p>\n

    There has been a sustained period of the 10-day MA bullishly tracking above the 50-day MA (since November 2023). Yet these two MAs have been converging since March. And it looks likely that they’ll soon cross over.<\/p>\n

    So with all these signals in mind, I’ll be watching several things from here…<\/p>\n

    <\/p>\n

    \n
    \n

    Free Trading Resources<\/strong><\/p>\n

    Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/p><\/div>\n<\/div>\n

    <\/p>\n

    An Emerging Down Move<\/h2>\n

    As we noted, the RSI recently broke below support. So what happens now is crucial to where CRM is heading next.<\/p>\n

    If the RSI extends further into its lower band and stays there, that will pull CRM further below the $300 level.<\/p>\n

    A prolonged stay in the RSI’s lower half could see CRM test the $275 level next.<\/p>\n

    I’ll also pay attention to the MACD. As the chart shows, it peaked back in December and is now testing the zero line.<\/p>\n

    If the MACD line continues to pull the Signal line into its lower half, that will add further weight to any down move.<\/p>\n

    In the long term, we’d then look for the 10-day MA to cross beneath the 50-day MA and keep tracking lower as evidence of a bigger down move.<\/p>\n

    Regards,<\/p>\n

    Larry Benedict
    Editor, Trading With Larry Benedict<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

    After a near-90% rally from its December 2022 low, Salesforce (CRM) consolidated from July through October 2023.<\/p>\n","protected":false},"author":55,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[58],"newsletter-type":[],"ticker":[],"class_list":["post-21730","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-larry-benedict"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/21730","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/55"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=21730"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/21730\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=21730"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=21730"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=21730"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=21730"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=21730"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=21730"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=21730"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}