Salesforce Inc (NYSE:CRM) shares have slipped into the red after giving up earlier gains. The company had announced a major government contract win.
Salesforce revealed that the U.S. Army has awarded the company a massive $5.6 billion, 10‑year Indefinite Delivery Indefinite Quantity (IDIQ) contract. The deal will be carried out through Computable Insights LLC, a wholly owned Salesforce subsidiary focusing on national security work.
Under the agreement, the Army and Department of War will use Salesforce's cloud tools to speed up decision‑making, streamline operations, and strengthen support for millions of service members, civilian employees, industrial partners and military families.
The contract is designed to help the Army scale innovation quickly, cutting procurement timelines from months to days while offering predictable pricing and simplified contracting.
Is Salesforce Stock Approaching Oversold Conditions?
Salesforce is currently positioned below all its key moving averages, indicating a bearish trend. The stock is trading approximately 8.4% below its 20-day SMA, 8.3% below its 50-day SMA and 11.1% below its 200-day SMA, suggesting ongoing weakness in momentum.
The RSI is currently at 35.79, which is considered neutral but close to oversold territory, indicating that Salesforce’s stock may be experiencing downward pressure, and traders should watch for potential rebounds if it enters oversold conditions. MACD is below its signal line, indicating bearish pressure on the stock, suggesting momentum is not in favor of buyers.
Key support is at $222.00, while resistance is set at $267.50. If Salesforce’s stock tests the support level, a breach could signal further declines, while a move above resistance might indicate a potential trend reversal.
In April, a death cross occurred when the 50-day SMA crossed below the 200-day SMA, reinforcing the bearish outlook. This crossover typically signals a longer-term downtrend, which traders should keep in mind.
Over the last 12 months, Salesforce’s stock has declined by 34.69%, reflecting significant weakness in its price action. This long-term trend underscores the challenges the company faces in regaining upward momentum.
Currently, Salesforce’s stock is near its 52-week low of $218.96, which suggests it is struggling to find a solid footing. Being at this lower end of the range raises concerns about further declines if selling pressure continues.
CRM Price Action: Salesforce shares were down 1.00% at $227.10 at the time of publication on Tuesday, according to Benzinga Pro.
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