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Salesforce's AI Play: A Timely, Low-Risk Entry After Sell-Off

Published 02/25/2025, 12:05 AM
CRM
-0.79%

As today is Technical Monday, I want to feature a stock that the recent sell-off now offers a good low-risk entry point. 

Plus, it is a top pick in my Outlook 2025. 

And you get to see how our proprietary plugins work. Salesforce - Daily Chart

Furthermore, there is news.  

Google (NASDAQ:GOOGL) Cloud secured a $2.5B, seven-year deal with Salesforce (NYSE:CRM), allowing Salesforce customers to run key software like Agentforce AI and Data Cloud on Google Cloud.  

The partnership aims to counter Microsoft’s dominance in enterprise AI and cloud, with clients like Wayfair (NYSE:W) and Accenture (NYSE:ACN) set to move Salesforce apps to Google Cloud. 

Salesforce will also integrate Google’s Gemini AI into its services. 

I included Salesforce as top 10 pick in the Outlook 2025 (page 31) because they helped fund the Olympics and the NFL on Netflix (NASDAQ:NFLX). 

Technically, there are 4 extremely interesting setups to note. 

  1. Monday’s low price is a new 60+ day low, making a reversal pattern a real possibility. 
  2. In November CRM gapped higher and made a low of 303.07 while today’s low is 303.61. More importantly, that gap has not been filled, making 293 a logical risk point.  
  3. Monday’s high sits right under the January 6-month calendar range, which now needs to clear with a closing price above it. 
  4. Real Motion while indicating weaker momentum (red dots) that what the price is telling us, sits right on the 200-DMA (green)  

This being technical Monday, I also want to stress that when market conditions change, we look for confirmation on these reversal patterns, even in the best stocks.  

ETF Summary  

(Pivotal means short-term bullish above that level and bearish below)  

  • S&P 500 (SPY) 599 held and needs to continue to do so 
  • Russell 2000 (IWM) 2025 low 213.97 
  • Dow (DIA) 432 support must hold 
  • Nasdaq (QQQ) 520 support and now waiting for NVDA earnings 
  • Regional banks (KRE) 60 area support 
  • Semiconductors (SMH) 245 support 260 resistance 
  • Transportation (IYT) 69-70 support 
  • Biotechnology (IBB) 140 resistance  
  • Retail (XRT) 74 major support and until it clears 77 still looks weak 
  • iShares 20+ Treasury Bonds (TLT) Needs to clear 90 to get interesting 

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