Shares of Salesforce, Inc (CRM) fell again yesterday, making a new multi-year low. Investors have been hammered in this stock, now down 55% since the beginning of 2025. However, there may be signs of a major bounce coming.
Salesforce has been getting crushed with other software stocks. Worries continue to mount that AI can kill off software stocks, thus investors are running for cover. However, history shows us this may be a near-term overreaction. Massive fear usually creates a strong counter-trend bounce, potentially a short squeeze, even if the longer-term narrative is correct.
Based on technical analysis, Salesforce has just filled a major gap from March 2023 and tagged a former pivot from October/November 2022. The probability of a bounce now sits at 80%, based on my factors.
Software stocks as a whole are due for a reversal. Look for this in the coming weeks. Upside on Salesforce is $210.
Source: https://www.fxstreet.com/news/salesforce-fills-gap-and-tags-major-support-202604101321
