Salesforce Inc. (CRM) has soared back up the rankings in the SIA S&P 100 Index Report since the start of this year, after spending 2022 stuck near the bottom of the red zone. Yesterday, boosted by a positive earnings report, CRM jumped 20 positions to 26th place, returning to the Green Favored Zone for the first time since November of 2020.
Salesforce.com (CRM) started to come under renewed accumulation back in December and over the first two months of this year, showed a number of encouraging signs technically, retaking its 50 and 200-day averages, establishing an upward trend of higher lows and snapping a long-term downtrend line.
Yesterday, CRM confirmed the start of a new uptrend by launching up off of its 200-day average and blasting through $175.00 with a breakaway gap on a big spike in volume to trade at its highest level since August.
Initial upside resistance may appear near the $200.00 round number, followed by $225.00, where a measured move and previous resistance dating back to early 2022 converge. The $175.00 breakout point reverses polarity to become initial support.
A major turnaround is underway in Salesforce.com (CRM) shares. Earlier this year, a long-term downtrend bottomed out with a retest of the 2020 bear market low near $125.00. Since then, the shares have turned decisively back upward. Initially, the shares staged a bullish High Pole breakout, which completed bullish Spread Double Top and Spread Triple Top patterns. A correction was quickly contained by a previous breakout point after only 3 rows, and CRM has since launched into a second High Pole with a Double Top breakout, completing a Bullish Catapult and also snapping a downtrend line.
A breakout over previous support/resistance near $192.60 would confirm the start of a new upleg with next potential resistance in the $208.50 to $216.92 zone where a cluster of previous column highs/lows appears, followed by a cluster of vertical and horizontal counts near $234.80. Initial support appears near $171.05 based on a 3-box reversal.
With a bullish SMAX score of 8, CRM is exhibiting strength against the asset classes.
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