Salesforce Stock Looks Like It’s Breaking Out Of A Bullish Flag Pattern

Salesforce.com Inc. (NYSE: CRM) shares were trading higher in Friday’s session following the company’s first-quarter print.

Mizuho maintained a Buy rating on the stock and raised the price target from $270 to $290.

Goldman Sachs maintained a Buy rating and lowered its price target from $315 to $310.

Salesforce was up 5.78% at $238.89 at last check.

Salesforce Daily Chart Analysis

• The stock has been trading in a downtrending channel for the last couple months and now possibly breaking out of a bullish flag pattern.
• The stock is trading above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the sentiment in the stock has been bullish. The stock crossed above the 200-day moving average Friday, possibly making the sentiment more bullish than before.
• Both of these moving averages may hold as support in the future.

Key Salesforce Levels To Watch

• The stock is trading in a downwards trending channel that may be thought of as a bullish flag pattern.
• This pattern occurs after the stock makes a run up and trades sideways for a while before possibly making a higher move.
• The line connecting the highs has held as resistance and the line connecting the lows is where the stock found support before.

What’s Next For Salesforce?

Bullish technical traders would like to see the stock break out of the resistance line that connects the highs and see an upward move. The stock looks as though it may have broken out of the pattern, and the coming days will be key to watch and see where it goes.

Bearish technical traders would like to see the stock fall below the line that connects the lows. A break below this line could signal that the stock is about to make a lower move.