One of the most highly followed and owned cloud software stocks is Salesforce.com (CRM). This stock has actually been making a series of lower highs on the weekly and daily charts over the past 6 months. The stock actually peaked out on September 2nd, 2020 at $284.50 a share. Since that top in the stock the shares have steadily declined and currently trade at $212.25 a share.
The weekly chart pattern is now forming a bearish consolidation pattern. The stock has been basing in a bearish manner for the past 4-weeks. This pattern is suggesting a decline is coming for the shares. The potential downside target is likely down to the $190.00 area. This area is where the stock broke out in mid-August 2020. Often, prior breakout levels will be defended by the institutional crowd when initially tested. So this level could be a solid long trade opportunity. Until then, be cautious with Salesforce.com (CRM).
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