Blue-Chip Tech stock may soon approach record levels
Salesforce.com stock has returned to a historically bullish trendline
Name of advanced technology Salesforce.com, inc. (NYSE: CRM) is up 1.1% to trade at $ 259.10 this afternoon. The title has fallen back on the charts since its August 26th. annual maximum of $ 275.22, although the $ 252 level contained negative price action. The drop also placed CRM near a trendline with historically bullish implications, giving investors plenty of reason to believe that the stock may soon be approaching all-time highs.
Specifically, equity has moved closer to one standard deviation of the 40-day moving average, after spending about a month above that trendline. According to data from Rocky White, senior quantitative analyst at Schaeffer, eight similar signals have occurred in the past three years. The Salesforce.com stock returned positive a month later in 88% of those cases, with an average gain of 5.7%. From its current location, a similar move would put CRM above the $ 272.50 mark, which is just short of the share’s all-time high.
An unwinding of pessimism in the options pits could also help equities rise. This is the open interest ratio (EVEN) of the Schaeffer stock to the Salesforce.com stock of 1.08, which is above 95% of the reads in the past 12 months. This suggests that short-term options traders have rarely been more put oriented.
Now looks like a good opportunity to weigh in on the next step in CRM with options. The Schaeffer Stock Volatility Index (SVI) of 25% is in the relatively low 14th percentile of its annual range. This means options players are currently evaluating low volatility expectations for Salesforce.com stocks.