The Salesforce stock recently publicized its Q2 earnings report on August 30th, 2023. The reported earnings gave a positive surprise by 11.79% from the estimated earnings. Moreover, the reported revenue also gave a positive surprise by 0.86% from the estimated revenue.
After a positive return, the stock invited profit booking and the price still declining from the trendline showing selling might continue towards the nearest support or may be possible it can rebound as well as it did in the past on the charts.
Salesforce has a debt-to-equity ratio of 16.2%, as reported by Simply Wall St. This implies that it has less debt than equity, which is the difference between its total assets of $92.45 Billion and total liabilities of $34.37 Billion. Salesforce has a debt of $9.42 Billion, while its equity is $58.08 Billion.
Salesforce experienced a decline in its earnings at a rate of 0.6% per year on average, according to Simply Wall St., a financial website. The software industry’s average annual earnings growth is 18.9%. Therefore, Salesforce earnings are lower than the industry average.
Moreover, Salesforce Inc. (CRM) stock has a market capitalization of $201.195 Billion and the shares float is $940.214 Million. Moreover, the stock’s basic EPS is $1.61 and the price-to-earnings ratio is 134.40.
Technical Analysis of CRM Stock Price in 1-D Timeframe
The price action shows that Salesforce Inc. (NYSE: CRM) stock price took major support at $126 around December back in the year and has been on a continued inclining trend up to $238 by July 19th, 2023 by making higher highs and higher lows, thereafter, it faced rejection and slid up to $201 to form a support and bounced back but faced resistance from the downward trendline and declining.
At the time of writing, CRM stock is trading at $215 facing nearest resistance around $226 and declining from the trendline. It is also noticed on examining the charts that in previous earnings reports, a slight profit booking came and the price rebounded quickly. So it can be presumed that the recent fall might be limited as well and even rebound in upcoming sessions.
Therefore, if the CRM price fails to sustain the current level and decreases more with profit booking, it might hit the nearest support levels of $205 and $201.
However, if it maintains the current level and rebounds successfully, the CRM prices could continue to move upward and reach the first and second resistances of $226 and $232.
At the time of publishing, Salesforce Inc. (NYSE: CRM) is trading below the major 20 and 50-day EMA (exponential moving averages), which rejects the CRM price trend.
The MACD line at 1.14 and signal line at 1.36 are above the zero line and both lines have crossed each other and a bearish crossover is observed.
The current value of RSI is 47 points. The 14 SMA is above the median line at 56 points which indicates that CRM stock is in bearish territory as RSI faced rejection from 14 SMA.
Combiningly, all indicators indicate bearishness for CRM stock.
Summary
Salesforce Inc. (NYSE: CRM) chart indicates that the traders and investors of the stock price are bearish on the 1-D time frame. The price action shows a bearish outlook at the time of publishing. The profit booking might still continue or rebound if it stops. The technical analysis tools of Salesforce stock price indicate bearishness.
Technical Levels
- Support levels: $205 and $201
- Resistance levels: $226 and $232
Disclaimer
In this article, the views and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/09/19/salesforce-stock-forecast-will-nyse-crm-descend-or-rebound/