PreMarket Prep Stock Of The Day: Salesforce
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A top-performing issue for most of 2020 has hit the skids and is attempting to breach a major support level. That issue is Salesforce.com (NYSE:CRM) and is the Premarket Prep Stock Of The Day.
Roaring For Most Of 2020: After ending 2019 at $162.64, the issue blasted to a new all-time high in February to $195.72. It got crushed with the broad market in March falling to $115.29. That marked the lowest level for the issue since its November 2018 low ($113.60).
From that level, it embarked on a five-month win streak that was snapped in September after making a new all-time high at $284.50. For the month of September, it declined from $272.65 to $251.32.
After a prolonged decline from September to December, it finally bottomed at $212.99. Interestingly, the rebound off that low matched the September close almost to the penny ($251.23 vs. $251.32) on Feb. 16.
Going Down On Mostly Good News: After the close on Feb. 25, Salesforce reported quarterly earnings of $1.04 per share, which beat the analyst consensus estimate of 75 cents. The company reported quarterly sales of $5.82 billion, which beat the analyst consensus estimate of $5.68 billion. The company also raised guidance.
Overall, not too shabby of a report. In the following session, it fell from $231.06 to $216.50 and has not found a bottom yet.
Hovering Above Major Support: Until Wednesday, the low for the year was $212.99 and had two other daily lows within a few dollars ($215.55 and $213.70), Not a perfect triple bottom, but a major area of support. In Tuesday’s session, the issue settled just off the ultimate low ($212.99) at $213.47.
With a weak broad market today, the issue was not able to reach Tuesday’s close, only reaching $213.32 off the open and collapsed. As of 12 p.m. ET, the low for the session stands at $208.20 and is attempting to rebound.
Moving Forward: Based on the daily charts, the issue may have a date with $200 as there are a pair of lows from Aug. 18 ($199) and Aug. 18 ($200.03). However, there is no monthly support until its ultimate August low of $191.72.
If looking to purchase the issue on strength instead of weakness, perhaps wait to see if the issue can rebound and sustain above the former low of the move.
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