This is the end of day chart for Sept. 1.
SPX scored a major bullish move early in the trading session and hardly retraced much after that.
With the Ichimoku Daily Chart, we can see a few signals aligned :
1. 1090 is the kumo resistance. A break above this will be a good indication for a move towards 1130
2. RSI is pointing up
3. Force Index is pointing up.
If all 3 of these holds up well for the week, we have a good chance for a great run towards 1130.
I mentioned about Salesforce.com (CRM) previously and about its consolidation.
I was late in the game and did not manage to catch CRM when they announced earnings.
As mentioned in my previous post on CRM, I am expecting that it will consolidate before moving up further.
The key is to find another entry point.
August 27 proves to be a good entry point as CRM dips down and shortly goes back above the level of 109.73
The general market condition wasn’t clear on its direction.
I was not at all convinced that CRM will be able to make a new high if the broader market is down.
What I did was to sell a vertical Sept 105/110 put.
This provides me with some buffer if I am wrong about CRM. At the same time, I make a bet on its bullish move with time on my side.
Today, with the broader market rally, CRMwas able to break through resistance 113.77 and establish new high.
If the broader market bullish move holds, I estimate that CRM should be able to hit a target price of 121 by end September.
Let’s keep my fingers crossed and see if this estimate will work out.
SPX has break above its resistance with RSI pointing upwards.
So long as it stays above 1065, we are good for bullish move on the Daily Chart.
