Stock of the day: Salesforce

In today’s analysis I am going to show you Salesforce, where recent volatility is really low, which makes us believe that it will increase soon, giving us, potentially sweet trading occasions.

The big picture here is that at the end of May, the price escaped to the upside from a giant flag pattern (blue lines), which gave us a long-term buy signal. After that, the upper line of the flag was later tested as a support, which is another important point for the bulls team.

Most recently, the volatility dropped completely and the price is moving sideways between the horizontal support on the 240 USD (lower green) and the horizontal resistance on the 246 USD (upper green).

As long as we stay inside, there is no trading signal but price breaking one of those barriers will give us a proper reason to trade. Daily close above 246 will be a buy signal and daily close below 240 will be an indication to go short. As for now, we do what traders should be doing more often, wait patiently!