:max_bytes(150000):strip_icc()/CRMChart-a82518715aba4d168f5c503ac9ec518a.jpg "Watch These Salesforce Price Levels as Stock Jumps on Upbeat Sales Outlook")
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Key Takeaways
- Salesforce shares rose in premarket trading Thursday after the software maker issued a better-than-expected long-term sales outlook.
- The stock looks set to open around the 50-day MA after the company’s upbeat revenue outlook, potentially setting the stage for a breakout from a descending broadening formation.
- Investors should watch critical overhead areas on the Salesforce chart around $270 and $290, while also monitoring support levels near $230 and $212.
Salesforce (CRM) shares gained ground in premarket trading Thursday after the software maker issued a better-than-expected long-term sales outlook.
The company said it expects revenue to surpass $60 billion in 2030, comfortably ahead of the level forecast by analysts. It also projects revenue growth of above 10% annually for the 2026–2030 fiscal years, boosted by its Agentforce software, which automates customer service tasks and business processes.
Shares of Salesforce, a Dow Jones Industrial Average component, were up 4.8% at $248 in recent premarket trading. Coming into today’s session, the stock had lost nearly 30% of its value so far this year amid concerns that competing AI software could slow adoption of the company’s Agentforce platform.
Below, let’s take a closer look at the Salesforce chart and apply technical analysis to identify critical price levels worth watching out for.
Descending Broadening Formation in Play
Since retesting the 200-day moving average (MA) in mid-May, Salesforce shares have traded lower within a descending broadening formation, tagging the pattern’s upper and lower trendlines on several occasions since that time.
More recently, the 50-day MA has provided selling pressure on attempted rallies, while the relative strength index has slipped slightly below its neutral threshold. However, the stock looks set to open around the 50-day MA after the software maker’s upbeat revenue outlook, potentially setting the stage for a breakout from the descending broadening formation.
Let’s point out two critical overhead levels to watch if Salesforce shares rally and also identify support levels worth monitoring if the stock resumes its longer-term downtrend.
Critical Overhead Areas to Watch
A volume-backed breakout above the descending broadening formation’s upper trendline could fuel a move toward $270, currently situated just below the falling 200-day MA. The shares may face overhead resistance in this location near multiple peaks and troughs on the chart spanning from December 2023 to July this year. This area also roughly aligns with the 61.8% Fibonacci retracement level when applying a grid from the May high to August low.
Buying above this level could see the shares climb to around $290. Those who have accumulated the stock during the descending broadening formation may seek to lock in profits in this region near a trendline that connects a range of corresponding trading activity on the chart stretching back to February last year.
Support Levels Worth Monitoring
If the stock resumes its longer-term move lower, investors should keep a close eye on the $230 level. This area could attract buying interest near several prominent lows that formed on the chart between June 2024 and August this year.
Finally, the bulls’ failure to successfully defend this vital level opens the door for a retest of lower support near $212. Bargain hunters could see this location as a value entry point around the stock’s May 2024 gap low.
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