“Trend will stay in place until its broken” – Learning from Salesforce “CRM” Chart.
Trend is traders’ friend
I alerted my group of folks on August 17th about potential CRM bearish pattern when stock was trading around $187-$189 area. It was looking weak and expecting a downward movement if and when stock breaks $186 level. On a 4 hrs timeframe chart, CRM was forming ascending triangle.. usually when it breaks, it goes down significantly. As shown in the chart below, CRM broke key support at $186 on Aug 18th, 2022.
Since then it continuously staying below that ascending triangle. Today, CRM announced earnings after market closed and it went down. CRM beat quarterly expectations but fall short on guidance for current quarter and full fiscal year.
CRM is trading around $167.5 after market which is very strong support level. Trends are traders friends and they work great until chart patterns fail. Chart patterns play a critical role when analyzing the charts for trading. In TA (Technical analysis), the transition in the trends are signaled by these chart patterns. By learning these chart patterns, you will be able to learn how to profit from these technical patterns.