Chart of Day: Salesforce (CRM) – 4/17

Keep an eye on Salesforce (CRM).

Wall Street believes the pullback is overdone.


crm
“Investors may be concerned that the news signals Salesforce returning to large-scale acquisitions and the pace of buybacks could slow as a result. While we understand wariness around Salesforce returning to its aggressive deal making of the past, we think the market’s reaction Monday is overblown. Informatica trades at a relatively similar revenue multiple to Salesforce, and its margins also are close, so potential dilution would be very manageable,” added CNBC.

Technically, CRM appears to have caught support, and is just starting to pivot higher. It’s also a bit oversold on RSI, MACD, and Williams’ %R. From its current price of $277.35, we’d like to see it retest $310 again shortly.

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