Salesforce, which had a very strong uptrend that brought the stock up to new all-time highs of $311 and which we have followed since the break in May when it was in the upper part of the bearish channel, has strongly reversed the course and is now approaching important supports. Today, however, there is the Fed meeting which is a particularly important event, especially for technological stocks which are more sensitive than others to changes in the monetary policies of Central Banks. It is therefore impossible to make predictions today and it will be necessary to wait for this evening before setting up operational strategies. But let’s start monitoring Salesforce in a Long key.
Salesforce [CRM] grew 0.3% to $256.2 in pre-trading. Yesterday, it closed at $255.6 (-3.8%). After the all-time highs marked in the area of $311, a rather strong corrective phase began for the stock which highlighted the confirmation of the $250 as an important psychological level, which in this case is a support. It could therefore be a good entry level with purchases in case of drops up to $240. In any case, it is better to wait for the reaction of the markets to tonight’s Fed meeting to see what happens and decide with greater confidence.
We recommend going LONG on the stock by buying the Leverage Shares Salesforce 3x ETP (ISIN: IE00BK5BZT14) or the 2x ETP (ISIN: IE00BD09ZY63), with an increase in exposure on any downturns towards $240, with a short-term target towards $270 and later at $280. Alert/stop loss should be above $250 (closing daily).
