Atlassian Corp. (NASDAQ:TEAM) shares are extending Thursday’s rally on Friday, touching a new all-time high today. Here’s what you need to know.
- Atlassian stock is approaching key resistance levels. Why are TEAM shares at highs?
Salesforce’s Strong Quarter Continues to Lift Enterprise Software
Salesforce Inc.’s (NYSE:CRM) second-quarter report, released after the close Wednesday, set off yesterday’s rally across enterprise software names, and that lift has carried into today. Revenue came in at $11.35 billion, topping the $11.32 billion analysts expected and marking an 11% increase from a year earlier, while adjusted earnings of $5.90 per share far exceeded the $3.27 estimate.
Looking ahead, Salesforce guided third-quarter revenue to $11.42 billion to $11.50 billion, above the $11.41 billion estimate, with adjusted earnings expected between $3.42 and $3.44 per share, ahead of the $3.37 consensus.
The company also raised its full-year revenue outlook to $46.1 billion to $46.4 billion from a prior $45.9 billion to $46.2 billion range, and lifted its full-year adjusted earnings guidance to $16.67 to $16.71 per share from an earlier $14.06 to $14.12 range.
Beyond the Salesforce connection, Atlassian shares are setting fresh records today. The stock surpassed $194 today, passing its 52-week high of $185.73 to mark a new all-time high for the company.
Atlassian’s Rally Looks Stretched On the Charts
That fresh high comes with a technical picture that reflects just how far the stock has run. Shares are trading roughly 24% above their 20-day moving average of $155.14 and about 78% above their 200-day average of $108.34, an extension typical of a strong trend that has gotten ahead of itself. A golden cross that formed in August, when the 50-day average moved above the 200-day, reinforces the bullish backdrop and tends to draw in trend-following buyers.
Momentum is the bigger story right now. The relative strength index sits at 79.87, deep into overbought territory, signaling the rally has outpaced its recent typical pace. That doesn’t necessarily mean a reversal is coming, but it does raise the odds of a pause, pullback or choppier trading if buying momentum fades.
Traders are watching $157.50 as support, a level close to the 20-day average that has often served as an early buying zone during strong uptrends like this one.
TEAM Shares Are Climbing
TEAM Price Action: Atlassian shares were up 4.40% at $193.79 at the time of publication on Friday. The stock is trading at a new 52-week high, according to Benzinga Pro.
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