There is a classic multi-factor trade setup on salesforce.com, inc. (NYSE:CRM). Current price has fallen below the 50 and 20 daily moving averages. Price has consolidated below those two moving averages in a near-perfect bear flag formation. There is a neck-tie of the two moving averages right above price creating a strong trigger to further downside. This setup has a high reward, low risk with a tight stop on it. As long as price does not close above the two moving averages at $103.35, short. With current price at $102.70, this is a tiny risk of $0.60. On the reward side, if price declines, it could fall at least to $98.00 as a first target, then potentially as low as the daily 200 moving average at $93.00. The risk/reward here is optimal.

Gareth Soloway
InTheMoneyStocks