By: Christian Tharp, CMT
After yesterday, the market isn’t looking all that strong. The pull back we have warned about finally took place and there’s no real telling if the selling is through. With that selling, there are a lot of bearish trades that are forming in the wake of the market tumble.
One of the best set ups we have found this far comes from Salesforce (CRM) after forming one of the most bearish chart patterns there is, a head and shoulders. Now, the price has a very important support to hold, otherwise, there is a steep decline in the cards for the stock.
Not only is this pattern coming into play for the stock, but we have a whole psych number acting as support that is not too far off at the moment. A break of this would surely mean lower prices are ahead and we could see a drop all the way down to 190 if selling pressure was to pick up again.
Check out the video below for the full video breakdown and see if this trade fits your plan and edge to trade. If nothing else, be sure to keep it on your watchlist as the week wraps up…
Watch the breakdown video at WEALTHPOP.com