Markets
CRM

Trade of the Day: Salesforce.com, Inc. Ready for a Year-End Rally

Shutterstock photo

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

Monday saw a broad-based rally in U.S. equities, and although technology stocks as a group did not lead the pack, they participated nicely and continued higher along their strong 2017 bull trend. Shares of Salesforce.com, Inc. (NYSE: CRM ) are having another great year of performance up more than 50% for the year and just recently completed a bullish reversal that could lead the stock toward a well-defined next upside target.

CRM Stock: Salesforce.com, Inc. Ready for a Year-End Rally

Source: Shutterstock

As a reminder, year-end dynamics for the U.S. stock market tend to be such that strongly performing stocks of the year (particularly the sexy go-to names) tend to hold up or rally into the last days of the year as underperforming fund managers have to chase these names higher for purposes of both performance and window dressing.

With only eight trading sessions left in the year and CRM stock up big in 2017, it does in my mind fit the bill as one of these stocks that fund managers will at least not sell down into year-end.

CRM Stock Charts

Click to Enlarge

Moving averages legend: red - 200 week, blue - 100 week, yellow - 50 week

For some necessary perspective, let's note that on the multiyear weekly chart CRM stock, thanks to a strong October and November rally, overshot its big-picture up-trend.

The weekly MACD oscillator at the bottom of the chart is registering all-time overbought readings in kind. From this angle and as a long-term buy entry point, this current juncture does not offer good reward to risk to yours truly.

Click to Enlarge

Moving averages legend: red - 200 day, blue - 100 day, yellow - 50 day

The picture on the daily chart, however, looks more reasonable, for a trade. Note that in early December CRM stock once again bounced off the lower end of its 2017 up-trend and the stock at the same time also held its yellow 50 day simple moving average on a daily closing basis.

Momentum on the daily chart also has come off its highs in recent weeks with the MACD in neutral territory.

Active investors and traders could now attempt a buy in CRM stock toward the $110 area as a next upside target (the very upper end of the 2017 channel as marked by the black parallels) and using a close below the $101 area as a last resort stop loss.

Check out Anthony Mirhaydari's Daily Market Outlook for Dec. 19.

Tell us what you think about this article! Drop us an email ateditor@investorplace.com,chat with us on Twitter at@InvestorPlaceorcomment on the post on Facebook. Read more about ourcomments policy here.

Take Serge's quiz to find out which trading strategy best suits your personality.

More From InvestorPlace

Compare Brokers

The post Trade of the Day: Salesforce.com, Inc. Ready for a Year-End Rally appeared first on InvestorPlace .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

CRM

Other Topics

Stocks

Latest Markets Videos