With prices weak Monday, maybe purchases should be delayed longer.
Let's check out the charts and indicators.
In the daily bar chart of CRM, below, we can see Monday's sharp decline to break below the rising 200-day moving average line. We don't know yet where CRM will close, but I would suggest it will close below the average line. The slope of the shorter 50-day moving average has been negative for several days.
The daily On-Balance-Volume (OBV) line has been in a decline from early March, signaling a shift to more aggressive selling.
The trend-following Moving Average Convergence Divergence (MACD) oscillator is below the zero line for an outright sell signal.
In the weekly bar chart of CRM, below, we have to imagine Monday 's break of the cresting 40-week moving average line. The OBV line has been moving lower the past three months and the MACD oscillator has crossed to a take profits sell signal on this longer time frame.
In this point and figure chart, below, we can see Monday's break of support. A downside price target of $137 is being projected.
Bottom-line strategy: The price of CRM has been rolling over since March and broke key support around $150 ahead of earnings being reported Tuesday. We have a $137 price target from our point and figure chart, but I would want to see prices stabilize and the OBV line turn up before considering the long side of CRM.