August 31 Chart of the Day - Salesforce
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Salesforce (CRM) jumped almost 6% in pre-market trading on Thursday following its better than expected second quarter earnings call where AI efforts took center stage.
Price recently back tested and held a figurative line in the sand level around $200 and hasn't looked back since.
All while traversing through a change control zone between $201.51 and $209.95 a dozen times since August of 2020.
Change control zones are one of the five tools we teach when charting anything. By definition, they are an area that represents where neither the bulls nor bears are in charge.
Price can slash though the zone with seemingly reckless abandon, price can respect the top or bottom from outside it or within it. Or, price can trade aimlessly sideways within it. When price breaks away from the zone it can often get drawn back to it like a magnet. And in this case we see all of the above are true.
Currently trading at $227 price could have its sights set on the $240 area before making a decision of whether to continue upwards or drift back towards the change control zone. But as we should know, price rarely if ever moves in a straight line.
So what's next?
We don't make predictions...
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
Take a look at the charts and let us know what you think.
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