Salesforce.com (CRM) - Get Report has proven it still dominates the cloud, but the stock now needs to take a breather before it moves higher.

Shares have soared more than 9%, reaching a 52-week high of $84.48 Thursday. The cloud software company delivered better-than-expected earnings. Shares are currently trading at $83.80. So taking profits now is the wise move.

Salesforce shares closed Friday at $83.77, up 0.6%. The shares are now up 6.7% year to date against a 2.7% rise in the S&P 500 (SPX) index. The stock can march higher, given its upbeat revenue outlook but near its 52-week high CRM is no longer a bargain.

Technically, the risk-versus-reward now points to the downside in the near term, as seen in the chart from TradingView.

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The two blue arrows above show the range the stock has traded in since the end of March, following a sharp rebound of almost 40% from the February lows. Since then the shares have consolidated by trading near the 100-day average of $72. You can see the manner in which, during that span, the yellow line has moved sideways in an almost flatline manner.

But with the stock now 7% above its 20-day period (blue line), a retest of the support area at around $78.90 (solid red line), or 6% lower, is almost inevitable. Not only will that move fill 50% of the 4% gap created on the earnings announcement, it will need to confirm whether the stock, which is now near all-time highs, can continue to move higher.

Until then, the stock will likely trade sideways to slightly down. The next buy point is not until $87.80. 

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.