Salesforce.com Inc. (CRM) has declined recently and it is testing its rising 200-day moving average line. You may have don’t extremely well in your investing by going with the fundamentals. I have no problem with that but you should not ignore this technical signal.
In this daily bar chart of CRM, below, we can see that prices have declined about $25 this month. CRM is below the declining 50-day moving average line and testing the still rising 200-day moving average line. The daily On-Balance-Volume (OBV) line started to turn down in late September and tells us that after a long rise that sellers are now more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is in an outright sell when it moved below the zero line earlier this month.
In this weekly bar chart of CRM, below, we can see the start of weakness. We can see the test of the rising 40-week average line. The weekly OBV line shows the start of weakness and the MACD oscillator has generated a take profits sell signal.
In this Point and Figure chart of CRM, below, we can see a potential downside price target of $112 or so.
Bottom line strategy: Whether or not you believe in technical analysis doesn’t bother me. However, I think you should pay attention to the 200-day moving average line on CRM.