Here’s your entry on SalesForce (CRM). (July 14, 2014)
Let’s look at Salesforce ( NYSE:CRM ). On Tuesday the 17th I was on “Fast Money Halftime” back in New York and I’d talked about Deckers ( NYSE:DECK ) and Cabelas ( NYSE:CAB ) but also said I really liked Salesforce ( NYSE:CRM ) on this breakout. I pretty much described this scenario that’s actually unfolding. What that was and is, is that you got this stock that had been consolidating, this is a typical phase one, phase two, phase three volatility squeeze formula that I use to trade pops or expansions from squeezes, but this kind of phase one is the initial breakout.
Well you don’t want to just chase these breakouts, I know a lot of traders love to do it, and I used to love to do it too except I lost money, it was fun until I lost money. It was kind of like a dog running after a garbage truck, the garbage truck stops at the next driveway and all of the sudden every dog looks like a bulldog. The same thing here, I had noted you want to look at this, it’s a good stock that’s just great; symmetrical triangle, breakout, buy the pullback. Once this stock breaks out, this prior resistance here, which is right here, is going to typically be current support, but where are we now?
Well, it looks to me like we’re at current support right here, so you go ahead and buy the stock, but you keep a stop just a little bit below this level and I think this is going to work just fine for you. That’s what I would do with Salesforce ( NYSE:CRM ), I like it, I think generally speaking the stock’s in a nice uptrend, I think you’ve got a rare opportunity to buy this stock. Now, when the company announces earnings in early August all bets are off, but there’s a lot of time between now and then so you can only hold me responsible for the end of July.
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