Stock of the day: Salesforce

Today’s focus is on Salesforce, which is currently facing a bearish scenario, trading at an absolutely key support level. The bearish pattern visible on the chart is a double top formation, marked with a green rectangle, signaling a potential trend reversal.

The yellow support level is crucial for several reasons. It serves as the neckline of the double top formation, and it also represents significant historical highs from 2021 and 2024, making it a major demand zone. Despite last week’s attempt to hold this support, there was no bullish reaction, indicating persistent selling pressure.

A breakout below this yellow support would be catastrophic for Salesforce, confirming the double top formation and triggering a strong sell signal. In this case, the target would be the black uptrend line, which serves as the last bullish stronghold.

If the price breaks below the black uptrend line, it would confirm a long-term bearish trend, signaling a major sell-off and a potential shift in market sentiment for Salesforce. Conversely, if the price bounces off the yellow support, it could provide a short-term buying opportunity, but the overall sentiment remains bearish.

With key levels under attack, traders should watch closely as a breakdown could lead to significant downside movement.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-salesforce-1