I hope you're not a shareholder in Salesforce.com (CRM). Shares of the $24 billion business software firm got unceremoniously sold off in yesterday's trading session, falling more than 4% by the time the closing bell rang. But even though yesterday's price action was painful, don't be fooled -- this stock is still definitely in an uptrend, and a more attractive opportunity to be a buyer is around the corner.
The uptrending channel in Salesforce.com is much longer-term than the one in TSM, but the trading implications are exactly the same. As this stock comes down to test support, traders should be looking for CRM's ability to catch a bid again. And just like TSM, it's critical to wait for shares to actually stage a bounce off of support, not just fall near it. While waiting for an actual bounce will mean leaving some potential gains on the table, it also means that you're greatly reducing your risk of jumping in just as CRM falls through support.
That's a tradeoff I'd make all day long.To see this week's trades in action, check out the Technical Setups for the Week portfolio on Stockpickr. -- Written by Jonas Elmerraji in Baltimore.
Twitter and become a fan on Facebook.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV