CRM Potential Reversal Pattern Strong volume today suggesting further upside coming following upbeat earnings
CRM trade ideas
THE WEEK AHEAD: CRM, ANF, HPQ EARNINGS; XOP, NFLX, FCX, EEMEARNINGS WITH A RANK >70/IMPLIED >50:
CRM (81/52): Announces on Tuesday after market close. The pictured defined risk setup pays a greater than a one-third of the wing width 1.89 with break evens between the expected and one standard deevy.
ANF (68/86): Announces Thursday before market open. The Dec 21st 16 short straddle was paying 3.04 as of Friday close; the 25 delta 14/19 short strangle, 1.19.
HPQ (85/41): Announces Thursday after market close. The Dec 21st 22/23 skinny short strangle is paying 1.45, which makes for a near nominal trade at 25% max (.36 profit). Look for background implied to ramp up to 50 plus; otherwise, pass on a play.
EXCHANGE-TRADED FUNDS WITH A RANK >50/IMPLIED >35:
USO (100/66): I tend to use this more as of oil volatility indicator than anything (although you can naturally look at that more directly with OVX). Here, it's saying "Sell premium in petro underlyings," which for me means XOP, XLE, or OIH.
UNG (96/104): With UNG, I'm waiting for a seasonality short, but think putting on something in December is likely to be too early. January, however, is coming into range (currently 54 DTE).
XOP (85/45): A smidge early to go out to January, but the 29/36 is paying a 1.52 in that expiry; the 32/33 "skinny," 3.58.
SINGLE NAME WITH A RANK OF >70/IMPLIED >50/EARNINGS IN REAR VIEW:
NFLX (78/59): It's still got juice ... . The Jan 18th 25-delta 220/225/300/305 iron condor's paying 2.13 at the mid (but the platform's showing wide markets, so that may not be as hot at NY open).
FCX (71/55): The Jan 18th 11 short straddle is paying 1.73.
BROAD MARKET:
EEM (71/27)
QQQ (66/28)
IWM (62/24)
SPY (39/21)
EFA (13/20)
Salesforce calls. Just for you dont buy this.
It's interesting to note the brackets and the current trend line. If by chance breaking the support, we know that the line has a high probability of being touched ..
If by chance the line is being played, it is very important to observe the RSI. RSI will help you understand what the next trend will be.
But honestly ... I've been pessimistic about US companies in the past 4 months.
Why am I pessimistic?
Link: www.usdebtclock.org
SALESFORCE.COM LONGSALESFORCE.COM LONG
The company's flash report will be on November 27th. In September, $ 180 - $ 190 received $ 165 - $ 174 in October. A steadily growing company, analysts, are also predicting a positive future. Looking at a technical picture, it looks like a support has been able to rebound and to overcome the 200-day moving average. Now trading between the $ 140 resistance and the 200-day moving average. In RSI, there is a divergence, which means that the exchange rate has been able to develop deeper points that the RSI indicator is getting higher and higher. RSI has to move with the exchange rate if there is a deviation, it may indicate the turn. Looking at the rise in the previous August, it appears that the elevation based on the Elliott Waves principle was followed by the 3-stage A-B-C correction. If I have correctly tagged the waves, then another 5-wave rise is expected in the exchange rate. The more robust resistance can be close to $ 150, if the exchange rate is worth it, it is worth pounding the profit. If you can not go through the next $ 140 resistance, the 200 mover again needs to catch the price from below, as long as you do not close again during 200, the exchange rate is in the rise.
CRMRally to new highs and then sell off in tech sector down to swing low 61.8% retracement. Long term view (late 2020) looking at $215.
Waiting for re-buy zone. Salesforce
It's an easy strategy. Expect her to hit the trend line and see if a raise is possible. Otherwise expect some zones below.
CRM Long in the ToothCRM coming back down to trend support here in an ascending wedge pattern. IT already came crashing down to the Monthly VPOC here. It looks to me still a deeper correction setting up here.
CRM bearish divergence pointing to short term correctionCRM is a name in a long term uptrend I really like for a long, and the technicals are telling me a long signal may be coming up soon. But first, we're getting some pretty clear short signals that I fully intend to take advantage of.
CRM has been trending up in a long term channel and recently the lower support line has risen much sharper while the resistance line remains the same, giving us a beautiful descending wedge pattern to play off of. Resistances right now are the Upper Bollinger Band and the upper resistance of the channel. While Salesforce has been able to breach the Upper Bollinger Band in the past, it generally cannot maintain the breakout for long, and always rejects hard when up against the channel resistance.
Further, the daily chart is setting up bearish divergence on the MACD and RSI oscillators, adding to my confidence of a short term correction in the near future.
We currently have a double bottom on the daily at 158.93, the loss of which could signal an earlier entry. I'm looking for a loss of the hourly higher lows to signal an entry - in the current formation that would be a loss of 158.12 support. My profit target would be to cover in the $150-145 range, and I would cover for a loss if we set a new all time high above 161.08.
CRM is nearing support before potential bull runCRM is nearing strong support at $150 and has recently bounced strongly 3% of of that support yesterday. CRM looks to have also created a steep bull run in the past year. Given the increase in momentum and no real concerns from analysts, CRM has a good chance at touching the top of it's channel come January at the $180 area. The January calls at strike $160 are trading at just under $8, but will fall to the $6.50 area if CRM retests $150. Given a potential $180 run by mid January, I'd give those calls a 1/3 risk/reward ratio if held until expiration, or an even better risk/reward of 0.5/3 if willing to cover in the even that $150 breaks. I'm waiting until CRM either nears $152.5 or breaks above $157.5 to enter the aforementioned calls.
Highly predictable channelIts been following this channel very well; it really shows that big players do consider this a moderate buy signal. A strong buy would have a much steeper slope imo.
Look for the bounce at the bottom of the channel. And if confirmed, then is an easy few percent up.
Safe play imo.
