Today’s chart is of Salesforce.com
(NYSE:CRM), which provides cloud computing and social enterprise solutions to various businesses and industries worldwide. The company delivers customer relationship management applications through Internet or cloud.
Click to enlarge
What I Am Looking At
First Trust ISE Cloud Computing ETF (NASDAQ:SKYY) up over 7% since mid-November bottom, outperforming the S&P 500 (INDEXSP:.INX) on a short-term basis
Greatly outperforming peers and the broader market, up over 60% year-to-date
The obvious bull flag and ascending triangle breakout from the $160 level, making an all-time high today
The 160-strike price was home to peak call open interest for the December/January series, appears to getting a delta-hedging rally as we break upwards through this strike
Delta-hedging rally may continue as major calls reside all the way up to the 175-strike
Based on equal measured move on the bull flag pattern looking to target near $180
Short interest represents 12% of the float
More than 10 days to cover, short-covering could help create a tailwind
Quarterly revenue growth (YOY) +35%
Breakout of bullish flag pattern and ascending triangle / wait for possible backtest of $160 level.
This article by Tony Venosa, CMT, was originally published on Schaeffer's Investment Research.
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No positions in stocks mentioned.