Salesforce.com underwent a regular “retreat” after joining the Dow Jones Industrial Average. Their share increased upwards, supported by a strong income statement.
Salesforce reported adjusted earnings of $ 1.44 per share and $ 5.15 billion in revenue. This exceeded analysts’ expectations of 67 cents per share of revenue of 4.9 billion dollars, according to Refinitiv.
The guidelines were also strong – for its current fiscal 2021, Salesforce manages earnings per share and holds them between $ 3.72 and $ 3.74 and revenue from $ 20.8 to $ 20.7 billion. The consensus on expectations is: $ 2.96 earnings per share and $ 20.07 future earnings. Some software stocks are under pressure, but Salesforce continues to consolidate close to the 10-week MA.
- Change in EPS percentage for the last quarter: + 118%
- Change in% of sales in the last quarter: + 29%
- Three-year annual growth rate of EPS: 38%
- Annual return on equity: 10,3%
- Annual profit margin before taxes: 19.2%
Salesforce.com Inc. – 1D
The CRM stock has formed a strong uptrend in channel between 285 and 223. The movement is supported by 50MA, and 200MA is very close.
The rise stops in the diagonal resistance and adjusts to the key level of 50% Fibonacci, from which it is possible to see retention and price rebound. This scenario in theory has started to run and the price forms a big red bar, which rejects the price of 237 to 50% Fibo, which coincides with the diagonal support of the price and 50MA.
This is a sign that the price is returning to the narrow range and it is possible to test the resistance for the 3rd time. If this happens, it would be good to wait for the retreat after the resistance level test and thus enter a position.
SL: 30 pips below the entrance to the deal
In an alternative case , the price would break support and form a lower bottom. When such a bottom is formed and the price falls below the periodic ones, the trend would reverse and we can consider sales deals.
This article is not a trade recommendation and should not be construed as such.
Junior Trader Kameliya Ivanova