Stock of the Day: Salesforce
20 October 2025
In today’s stock of the day, let’s take a closer look at Salesforce, which recently gave traders a false buy signal — a move that left many market participants cautious. The stock had been moving inside a symmetric triangle pattern, marked with blue lines, indicating that volatility was gradually tightening and that a breakout was imminent. And indeed, in the previous week, the breakout occurred — but unfortunately, it turned out to be false. The price moved above the upper boundary of the triangle, only to be rejected at the orange horizontal resistance, a level that has proven to be much stronger than expected.
After this failed attempt, Salesforce slipped back inside the triangle, which from a technical perspective is a bearish development. False breakouts often lead to moves in the opposite direction, as trapped buyers are forced to unwind their positions, adding downward pressure. For now, the sentiment on Salesforce remains neutral to slightly negative, as long as the price stays confined below the orange resistance zone.
However, there is still hope for the bulls — particularly if the broader market helps. The major indices are currently attempting a rebound, and if that recovery gains traction, Salesforce could benefit from the improved sentiment. The key, though, will be the daily close above the orange resistance, which would invalidate the false breakout narrative and trigger a fresh long-term buy signal. Until that happens, traders should remain cautious, as the stock continues to consolidate within its triangular structure.