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Swing Trade Idea (CRM) – January 23, 2024

Our bearish trade for Tuesday, January 23rd is Salesforce Inc (CRM). CRM is part of the Technology Sector, which has performed at 4.48% over the last week, with CRM underperforming relative to its sector at 3.08% over the same period.

CRM has been very bullish over several months and has now traded into an area at $280. As it is extremely overbought and showing signs of weakness, we expect to see a pullback to lower levels with $265 and $250 being the next areas of support. 

As a close, if CRM were to trade above $280 for multiple days, this would invalidate our analysis and we will consider cutting losses on the trade. We will also consider cutting losses on this options trade if the value of the vertical spread moves below $5.96.