Most of you have heard the saying: the trend is your friend. The idea is simple—you want to go with the flow, ride the wave, and not fight against market momentum. A crucial aspect of this is understanding how stocks react after earnings rather than focusing solely on earnings beats or misses.
Salesforce Stock Post-Earnings Price Action: Key Observations
The key takeaway here is that the trend has shifted, and the objective is to find an optimal entry point to short the stock. However, unlike going long, where traders can aggressively enter at different levels, shorting requires a more precise approach—like a sniper, not a machine gun. Shorts need carefully timed entries, as markets generally trend higher over time, making short trades riskier but potentially more rewarding.
The Simple Short Trade Plan on Salesforce Stock Post Last Night's Negative Earnings
CRM Short Trade Plan – Post Earnings (Feb 28, 2025)
Weighted Average Entry Price: $301.48Total Position Size: 600 shares (adjust position size accordingly)Full Position Stop Loss: $304.50Take Profit Level: $271.34Risk-Reward Ratio: 10:1 (Potential reward of $36,300 vs. max loss of $3,600)Taking partial profits at key levels ensures risk management and allows traders to secure gains along the way rather than hoping for a single large move. The example below illustrates selling 20% of the short position at each key target:
The plan prioritizes scaling into the short position around $300 resistance and securing profits on the way down.If all five partial profit targets are hit, the total realized profit is optimized while maintaining risk control.-earnings reaction in Salesforce (CRM) presents a high-probability short setup. However, the execution must be disciplined and strategic. We do not blindly short but instead look for localized retracements into resistance before initiating positions. This sniper-like precision ensures better trade execution and improved risk-reward dynamics.
⚠️ Disclaimer: This is not financial advice. Trade at your own risk. For additional insights, visit ForexLive.com for professional market perspectives and analysis. Visit ForexLive.com for additional views.
This article was written by Itai Levitan at www.forexlive.com. Read More Details
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