4 Trade Ideas for Salesforce: Bonus Idea

• Posted by Greg Harmon
• on April 24th, 2023

Here is your Bonus Idea with links to the full Top Ten:

Salesforce, $CRM, comes into the week pressing on resistance. This is at the 38.2% retracement of the drop from the November 2021 all-time high to the low in December last year. The RSI is in the bullish zone with the MACD level and positive. There is resistance at 200 and 205 then a gap to fill to 208.70 followed by 216 and 222. Support lower comes at 193 and 189. Short interest is low at 1%. The stock does not pay a dividend. The company is expected to report earnings next on May 29th.

The May options chain shows open interest build from 200 to a peak at 185 then tail to 150 on the put side. On the call side it builds from 155 to a peak at 200. The June chain has open interest spread from 195 to 150 with a peak at 160 on the put side. On the call side it builds to a peak at 200. July options just started trading and have little open interest. The August chain has biggest open interest at the 170 and 160 strikes on the put side and from 200 to 240 on the call side.

Salesforce, Ticker: $CRM

Trade Idea 1: Buy the stock on a move over 200 with a stop at 192.

Trade Idea 2: Buy the stock on a move over 200 and add a May 195/185 Put Spread ($2.35) while selling a June 230 Call ($1.50).

Trade Idea 3: Buy the May/June 210 Call Calendar ($4.50) and sell the June 175 Put ($2.75).

Trade Idea 4: Buy the August 165/210/220 Call Spread Risk Reversal (30 cents).

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with the April options expiration in the books and heading into the heart of earnings season, saw equity markets showed a lack of energy churning in narrow ranges.

Elsewhere look for Gold to pause in its uptrend while Crude Oil pulls back in its consolidation in a broad range. The US Dollar Index continues to drift to the downside while US Treasuries pullback in broad consolidation. The Shanghai Composite looks to pullback while Emerging Markets consolidate in their downtrend.

The Volatility Index looks to remain low and stable creating a positive environment for equity markets to move the upside. Their charts have all transformed to some form of consolidation in the short term. On the longer timeframe both the QQQ and IWM are also in consolidation while the SPY still holds a small bias to the upside over stability. Use this information as you prepare for the coming week and trad’em well.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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