Recently, leading enterprise software stock, Salesforce.com (CRM), has come under some sharp selling pressure. Salesforce.com Inc (CRM) just announced that they would acquire Slack (WORK) in a cash-and-stock deal worth $27.7 billion. Often, the company making the acquisition will decline as is the case herewith Salesfor.com. Salesforce.com Inc (CRM) stock is now trading below it’s important 50-day moving average. This puts the stock in a weak technical position on the charts in the near term.
So far, CRM shares have been defended around the $220.00 level. Please note, the stock traded as low as $215.63 a share on December 2nd, 2020. Currently, the stock is trading at $226.54. Traders must now watch the recent low on a closing basis. Any close below the $215.63 level should trigger a further decline in the shares. The next major support level for CRM stock will be down around the $200.00 level. This key support area is where the stock broke out in August 2020 from a two month sideways base. It is also where the 200-day moving average is and this makes for an excellent support area when tested. I would look to own shares in Salesforce.com around the major support level.
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