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Swing Trade Idea (CRM) – March 13, 2024

Our bearish trade for Wednesday, March 13th is Salesforce Inc. (CRM). CRM is part of the Technology Sector, which traded at 1.53% over the last month, with CRM overperforming at 5.26% over the same period.

CRM has been extremely bullish over the last few months and has now traded into an area of resistance as it formed a double top at the all-time high price of $320. Also, CRM traded into the top of an uptrend channel and as such, we are seeing a pullback from this level. We expect to see some downside with support at around $270.

As a close, if CRM were to trade above $310 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 above $13.50.