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Today’s chart is of salesforce.com (CRM) which provides cloud computing and social enterprise solutions to various businesses and industries worldwide. The company delivers customer relationship management applications through Internet or cloud.
Ticker: salesforce.com (CRM)
Strategy: Long Trade
What I Am Looking At:
- First Trust ISE Cloud Computing ETF (SKYY) up over 7 percent since mid-November bottom, outperforming the S&P 500 on a short-term basis
- Greatly outperforming peers and the broader market, up over 60 percent year-to-date
- The obvious bull flag and ascending triangle breakout from the $160 level, making an all-time high today
- The 160-strike price was home to peak call open interest for the December/January series, appears to getting a delta-hedging rally as we break upwards through this strike
- Delta-hedging rally may continue as major calls reside all the way up to the 175-strike
- Based on equal measured move on the bull flag pattern looking to target near $180
- Short interest represents 12 percent of the float
- More than 10 days to cover, short-covering could help create a tailwind
- Quarterly revenue growth (YOY) +35 percent
Trigger: Breakout of bullish flag pattern and ascending triangle/ Wait for possible backtest of $160 level