How much lower can Salesforce sink after raising the bear flag this week?

Salesforce Inc. (NYSE:CRM) has been under bear control since November 2021. A few weeks ago, the company appeared to have found support at $200, but that did not hold. This week, the stock sank further to the current valuation of $186. Whales have taken a bet on the company, with the lowest price target being $150.

Salesforce suffers from the fears of macro recession and market suppression. Technology stocks had a jittery few weeks, with prices being pushed downwards. Though unrelated, the crash of Netflix (NASDAQ:NFLX) caused increased apprehension in the market. Investors will, therefore, be reassessing strategies for stocks that were previously believed to have bottomed out.

Are you looking for fast-news, hot-tips and market analysis?

Sign-up for the Invezz newsletter, today.

Various analysts have rated Salesforce a buy on the belief that the stock hit a bottom. While that was apparent, various factors should be considered before buying the stock. The company is rated low on value, growth, and momentum. PEG ratio of 2.39 shows that CRM is overvalued. The forward PE of 40.05 means that investors will be more careful when looking at this security. We think that Salesforce will slide further to find $150.

Salesforce sinks below the 200-day moving average

At a price of $186, Salesforce slipped below the 200-day average of $188. It has set off a bear flag. With the RSI at 32.90 and the 14-day average at 34.98, there is still room for Salesforce to trend lower.

The analysis, therefore, finds that the company is likely to tumble from the current valuation. In the probable event that the projection materializes, the stock is likely to find support and consolidation at around $150. The fact that the next earnings call is more than a month away does not help the situation.

Summary

Whales are taking a bet on Salesforce with a $150 price target and a strong bearish sentiment. The weekly price just slipped below the 200-day average. The RSI shows that the market could still push the prices lower before the oversold signal is triggered.