The CRM short trade had a 4 for 1 stock split on Thursday so I’ve updated both the daily & weekly charts, including the price targets, to reflect the split adjusted prices. Also note that since the previous post and short entry on April 4th, CRM did indeed break below the nearly 4 1/2 year primary uptrend line as expected. This helps confirm the short entry based off the daily chart and makes CRM one of my favorite long-term swing trades at this time, with a potential gain of over 50% to the final weekly target (T4 at 19.25). My preferred stop remains on move above the 48.40 level (about 3% above the recent highs).
Also note that I have slightly redrawn the pattern on the daily chart and since the short entry just over two weeks ago, prices have twice kissed that key horizontal support level and are currently clinging to it as I type. With both the MACD & RSI clearly pointing lower, I’d say that the odds of prices breaking below this support level soon are good to excellent and with a stratospheric p/e ratio of 683, CRM has very little margin for error. If so, any solid break below this support level (the 40.00 area) would trigger an objective add-on or new short entry for CRM. Updated daily & weekly charts: