Salesforce Stock Slides 1.54% As Technical Indicators Signal Prolonged Downtrend

Comprehensive Technical Analysis: Salesforce (CRM)
Introduction
Salesforce (CRM) closed at $233.37 in the latest session, declining 1.54%. This movement caps a volatile period, with the stock retreating from a January 2025 peak above $360 to current levels. The following analysis synthesizes multiple technical indicators to assess potential trends and key price levels.
Candlestick Theory
Recent candlesticks reveal bearish momentum, with a notable August 13th bullish engulfing pattern ($229.61–$237.35) failing to sustain upside traction. Subsequent sessions formed lower highs, confirming resistance near $237. A series of small-bodied candles near $230–$235 suggests indecision, but the absence of reversal patterns (e.g., hammers) implies vulnerability. Key support resides at the August 11th low of $231.57 and the psychological $230 level, while resistance solidifies at $237 (August 13th high) and $241.87 (August 11th high).
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages exhibit a bearish alignment. The 50-day MA (near $246) accelerated below the 100-day and 200-day MAs in May 2025, triggering a "death cross." Prices remain below all three averages, signaling entrenched downtrend strength. The 200-day MA (near $285) now acts as distant resistance, emphasizing the stock’s structural weakness.
MACD & KDJ Indicators
The MACD histogram hovers below its signal line and the zero line, reflecting sustained bearish momentum despite a minor convergence in early August. Meanwhile, the KDJ oscillator shows the %K line repeatedly failing to breach the 50 midpoint, oscillating near oversold territory (recently touching 25). This suggests weak bullish impulses and potential continuation of downside pressure. Divergence emerged when KDJ marginally improved in late July while prices made lower highs—a false positive signal later invalidated.
Bollinger Bands
Bollinger Bands contracted sharply in early August (volatility squeeze) before expanding downward, validating August’s breakdown. Prices persistently trade near the lower band ($232–$235), indicating oversold conditions but with no recovery signal. Band expansion aligns with bearish momentum; a close above the 20-period midline ($244) would be necessary to suggest trend reversal potential.
Volume-Price Relationship
Down days (e.g., August 11th, -3.26% on 10.7M shares) frequently occur on elevated volume, confirming distribution. Conversely, minor rallies (e.g., August 13th, +2.32% on 10.2M shares) lack proportional volume support, invalidating upside sustainability. The July 31st breakdown (-2.45% on 7.3M shares) initiated a high-volume downtrend phase, cementing $258–$260 as resistance.
Relative Strength Index (RSI)
The 14-day RSI reads 38, hovering near oversold territory (<30) but avoiding extreme levels since late July. While the July oversold bounce failed at RSI 60 (rejecting mid-trend resistance), the indicator’s inability to breach 50 during recent rallies underscores bearish dominance. False bullish divergences occurred when RSI formed higher lows against price’s lower lows in June–July, warning against premature reversal calls.
Fibonacci Retracement
Applying Fib levels to the January 2025 high ($360) and August 2025 low ($232.87):
- 38.2% retracement: $277 (July resistance)
- 50% retracement: $296 (May–June resistance)
- 61.8% retracement: $315 (distant resistance)
The 38.2% level rejected rallies in July, while the 23.6% level ($253) now acts as near-term resistance. The failure to reclaim $253 after repeated tests in August highlights bearish momentum.
Confluence and Divergence Insights
Confluence Bearish Signals:
- Price below all key MAs, with the 50-day MA reinforcing $245 resistance.
- MACD/KDJ alignment in negative territory.
- Volume confirming distribution during breakdowns.
Notable Divergence: The KDJ showed minor bullish divergence in late July (higher lows vs. price’s lower lows), but MACD and volume failed to corroborate, resulting in a false signal.
Conclusion
Salesforce exhibits a bearish technical structure, with resistance firmly established at $237–$241.87 and critical support at $230–$232.87. Oversold signals (RSI, KDJ) lack volume and momentum confirmation, suggesting rallies remain vulnerable to selling pressure. A decisive close below $230 may target the June 2024 low of $205, while reclaiming the 50-day MA ($246) is essential to invalidate the downtrend. Until volume-backed bullish reversal patterns emerge alongside indicator confirmations (e.g., MACD crossing above zero), cautious positioning remains prudent.