Salesforce Inc. (CRM) exceeded earnings per share estimates after the closing bell on March 1, 2023. The cloud-based customer relationship software company held its 200-day simple moving average on February 24, 2023 at $160.10 on March 2. The open on the day was $193.12, a gain of 15.3%. If you bought Open, you had a 3.3% daily loss. This is a warning that buying a gap open does not mean daily profit.
Salesforce focuses on artificial intelligence software across cloud, mobile, and social platforms. The stock is not cheap. Its P/E ratio is 69.88% and it doesn’t offer a dividend, according to Macrotrends. The company has beaten earnings per share estimates for twenty-four straight quarters.
The daily chart for Salesforce
Daily chart for Salesforce
refinitive
Courtesy of Refinitiv XENITH
The daily chart shows that Salesforce has been under the death cross for more than a year. This happened as the 50-day simple moving average is below the 200-day simple moving average.
The stock hit its 52-week low of $126.60 on Dec. 21, and that day proved to be a key positive reversal. This came as the close of $130.30 was above the December 20 high of $129.99.
Salesforce shares closed above its 200-day simple moving average at $161.37 on Jan. 26 and traded as low as $178.84 on Feb. 2. It then fell back to its 200-day SMA at $160.33 on Feb. 24. The stock gaped above its quarterly pivot at $170.33 and traded to a March 2nd high of $193.91. The stock ended last week at $186.43.
The four horizontal lines from bottom to top are the monthly value level at $153.76, the quarterly pivot at $170.33, and the semi-annual and annual risk levels at $215.46 and $227.48.
The weekly chart for Salesforce
Weekly chart for Salesforce
refinitive
Courtesy of Refinitiv XENITH
The weekly chart for Salesforce is positive as the stock trades well above its modified five-week moving average at $163.87. The stock is below its 200-week simple moving average or “return to mean” at $196.92. The 12x3x3 weekly slow stochastic reading rises at 73.49 on a 00.00 10 100.00 scale, with a reading above 80.00 being overbought and below 20.00 being oversold.
Trading strategy: Buy Salesforce on weakness to its quarterly pivot at $170.33. Reduce your strength holdings to the 200 week simple moving average or ‘revert to mean’ at $196.92.
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