Salesforce ($CRM) Price Continuation Projection/Idea

Based on the pictures I have attached, I do believe $CRM can see a positive shift higher in the months to come. Based on strictly technical analysis, I have identified two reasons: 1) Bull Flag Formation & 2) Volume. 1) Bull Flag Formation: Bull Flag Formation is a continuation pattern to the upside. Bullish flag formations are found in stocks with strong uptrends. The Bull Flag is formed by a significant run-up(pole) then a pullback where both the top and bottom trend go downward diagonally forming the flag shape. The top line acts as a resistance and the bottom acts as support. Bull Flags work best on the larger timeframes and great swing trade set-ups. In regards to the chart I have attached, $CRM has been consolidating within the flag formation from September 2020- April 2021 (7 months). This is a good indication because when the flag does end up breaking to the upside, the move will be very strong.  2) Volume: The bullish volume pattern increases in the preceding trend and declines in the consolidation. By contrast, a bearish volume pattern increases first and then tends to hold level since bearish trends tend to increase in volume as time progresses. You can clearly see in the picture attached, how the volume significantly decreased after the strong surge in volume as the stock was building the flag pole. Then the volume dropped off as the stock began consolidating for several months. The breakout from the bull flag often sees another increase in volume, although volume may not increase dramatically. The breakout may not always have a high volume surge, but analysts and traders prefer to see one because it implies that investors and other traders have entered the stock in a new wave of enthusiasm. This confirms the pattern and increases the likelihood that the breakout will be successful. A bullish flag pattern typically has the following features that everyone should look for: 1) Stock has made a strong move up on high relative volume, forming the pole. 2) Stock consolidates near the top of the pole on a lighter volume, forming the flag. 3) Stock breaks out of consolidation pattern on high relative volume to continue the trend. 2/3 of the list posted above has come true (Check Chart Posted). We are now patiently waiting for the breakout of the Bull Flag. 

back
default-avatar-2

VinnyKlair33

Apr 19, 2021

12.27%

Change % Since Posting

231.91

Price When Posted

28.45

Change Since Posting

CRM

Salesforce.Com Inc

260.36

0.00
0.00%
Current Price

Salesforce ($CRM) Price Continuation Projection/Idea

bullish

Based on the pictures I have attached, I do believe $CRM can see a positive shift higher in the months to come. Based on strictly technical analysis, I have identified two reasons: 1) Bull Flag Formation & 2) Volume.

1) Bull Flag Formation:
Bull Flag Formation is a continuation pattern to the upside. Bullish flag formations are found in stocks with strong uptrends. The Bull Flag is formed by a significant run-up(pole) then a pullback where both the top and bottom trend go downward diagonally forming the flag shape. The top line acts as a resistance and the bottom acts as support. Bull Flags work best on the larger timeframes and great swing trade set-ups. In regards to the chart I have attached, $CRM has been consolidating within the flag formation from September 2020- April 2021 (7 months). This is a good indication because when the flag does end up breaking to the upside, the move will be very strong. 

2) Volume:

The bullish volume pattern increases in the preceding trend and declines in the consolidation. By contrast, a bearish volume pattern increases first and then tends to hold level since bearish trends tend to increase in volume as time progresses. You can clearly see in the picture attached, how the volume significantly decreased after the strong surge in volume as the stock was building the flag pole. Then the volume dropped off as the stock began consolidating for several months. The breakout from the bull flag often sees another increase in volume, although volume may not increase dramatically. The breakout may not always have a high volume surge, but analysts and traders prefer to see one because it implies that investors and other traders have entered the stock in a new wave of enthusiasm. This confirms the pattern and increases the likelihood that the breakout will be successful.

A bullish flag pattern typically has the following features that everyone should look for:

1) Stock has made a strong move up on high relative volume, forming the pole.
2) Stock consolidates near the top of the pole on a lighter volume, forming the flag.
3) Stock breaks out of consolidation pattern on high relative volume to continue the trend.

2/3 of the list posted above has come true (Check Chart Posted). We are now patiently waiting for the breakout of the Bull Flag. 

 

Comments

Write your comment....

Sign in to comment

read-time
1 min

280.00

Target Price

8/ 10

Confidence

2-4 Weeks

Timeframe
catalyst icon
Moving Average
catalyst icon
RSI
catalyst icon
Volume
catalyst icon
Beta
catalyst icon
Bollinger Band
catalyst icon
Other Catalyst

CRM Channel

Start new chat
next