Key Takeaways
- Salesforce shares tumbled Thursday after the cloud-based software company issued a sales forecast below Wall Street’s expectations, raising concerns about demand for its flagship AI agent platform.
- Salesforce shares had staged a countertrend rally leading into the company’s quarterly results, though the relative strength index had remained entrenched in bearish territory, signaling underlying weak momentum in the stock.
- Investors should watch key support levels on the Salesforce chart around $225 and $200, while also monitoring important overhead areas near $267 and $290.
Salesforce (CRM) shares tumbled Thursday after the cloud-based software company issued a sales forecast below Wall Street’s expectations, raising concerns about demand for its flagship AI agent platform.
The company’s results for the fiscal second quarter, announced late Wednesday, came in above analysts’ estimates on the top and bottom lines, but revenue guidance for the current quarter of $10.24 billion to $10.29 billion proved disappointing. Investors increasingly want to see strong sales growth from AI facing firms like Salesforce that have made significant investments in AI powered software.
Salesforce shares fell nearly 5% to around $244 on Thursday, leading decliners in the Dow Jones Industrial Average. The stock has lost 27% since the start of 2025 amid concerns over the software maker’s slowing revenue growth and the uptake of its AI Agentforce platform.
Below, we take a closer look at the technicals on the Salesforce weekly chart and identify price levels that investors will likely be watching.
Countertrend Rally Under Pressure
After forming a hammer candlestick pattern at the respected 200-week moving average (MA) last month, Salesforce shares had staged a countertrend rally leading into the company’s quarterly results.
Despite the bounce in recent weeks, the relative strength index (RSI) had remained entrenched in bearish territory, signaling underlying weak momentum in the stock.
Let’s point out key support levels to watch on the Salesforce chart amid the potential for further selling and also identify important overhead areas worth monitoring.
Key Support Levels to Watch
Firstly, it’s worth keeping track of support around $225. The shares could encounter buying interest in this area near a trendline that links multiple peaks and troughs on the chart between May 2023 and August this year.
Selling below this key level could see the stock revisit lower support at $200. Investors may look for entry points in this region near the psychological round number and a range of corresponding trading activity on the chart from March to October 2023.
This location also sits in the same neighborhood as a bars pattern downside price target that takes the stock’s downtrend from May to August and repositions it from the recent countertrend rally high, projecting how a new move lower may play out.
Important Overhead Areas Worth Monitoring
During recovery efforts in the stock, keep a close eye how the price responds to the $267 area. Those who have bought shares at lower levels may look for exit points in this location near a horizontal line that connects a range of price action on the chart stretching back to the December 2023 high.
Finally, a close above this area could see Salesforce shares climb to around $290. This location provides a confluence of resistance near the 50-week MA and two notable peaks that formed on the chart in May 2024 and May 2025.
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