Watch these Salesforce price levels as shares rise on upbeat sales outlook

Shares of Salesforce (CRM) rose in premarket trading Thursday after the software maker issued a better-than-expected long-term sales forecast.

The company said it expects revenue to exceed $60 billion in 2030, comfortably above the level analysts had expected. It also expects revenue to grow more than 10% annually for fiscal years 2026-2030, fueled by Agentforce, which automates customer service tasks and business processes.

Shares of Salesforce, a component of the Dow Jones Industrial Average, rose 4.8% to $248 in recent premarket trading. Entering today’s session, the stock had lost nearly 30% of its value so far this year amid concerns that competing artificial intelligence software could slow adoption of the company’s Agentforce platform.

Below, let’s take a closer look at the Salesforce chart and apply technical analysis to identify critical price levels worth paying attention to.

Expanded descending formation in play

Since retesting the 200-day moving average (MA) in mid-May, Salesforce shares have traded lower within a bearish extension formation, marking the upper and lower trend lines of the pattern on several occasions since that time.

More recently, the 50-day moving average provided selling pressure on attempted rallies, while the RSI fell slightly below a neutral threshold. However, the stock appears poised to open around the 50-day moving average following the upbeat revenue outlook from the software maker, which could set the stage for a breakout from the bearish expansion formation.

Let’s point out two additional levels that are crucial to watching if Salesforce stock rises as well as identifying support levels worth watching if the stock resumes its long-term downtrend.

Critical public areas that must be monitored

A volume-supported breakout above the upper trendline of the bearish broadening formation could fuel a move towards the $270 area, which is currently just below the 200-day moving average. Stocks may face general resistance at this location near multiple tops and bottoms on the chart extending from December 2023 to July of this year. This area also roughly corresponds to the 61.8% Fibonacci retracement level when applying a grid from the May high to the August low.

Buying above that level could send shares rising to around $290. Those who accumulated stocks during a bearish expansion formation may seek to lock in profits in this area near the trend line connecting a range of corresponding trading activity on the chart extending back to February of last year.

Support levels are worth monitoring

If the stock resumes its long-term downward movement, investors should keep a close eye on the $230 level. This area could attract buying interest near several notable lows that formed on the chart between June 2024 and August of this year.

Finally, the failure of the bulls to successfully defend this vital level opens the door to a retest of the lower support near $212. Bargain hunters could see this position as an entry point for value around the stock’s May 2024 gap low.

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As of the date of writing this article, the author does not own any of the securities mentioned above.