Watch these Salesforce price levels as the stock rises after strong earnings

Salesforce (CRM) shares jumped in premarket trading Thursday after the enterprise software company reported better-than-expected second-quarter results and raised its full-year earnings forecast as customers spent more on the company's cloud products.

The San Francisco-based company, which also announced the resignation of Chief Financial Officer Amy Weaver late Thursday, has seen sales decline this year as a result of tighter corporate budgets and increasing competition in the cloud artificial intelligence (AI) software sector, and the company's shares have come under pressure.

Salesforce shares rose 4.8% to $271.25 about 90 minutes before the market opened.

Below, we'll explain what the technicals on the Salesforce chart are saying and point out key price levels that investors will likely be keeping an eye on after the company releases its earnings report.

Breakout from the symmetrical triangle pattern

Salesforce shares have been oscillating in a symmetrical triangle since mid-May, with a notable gap of around 20% at the beginning of the pattern. Recently, the price consolidated just below the triangle's upper trendline and the 200-day moving average ahead of the company's quarterly report.

Thursday's forecast earnings beat positions the stock for a decisive breakout above this closely watched chart area, potentially marking the start of a new uptrend.

Given the possibility of a rally following the earnings release, investors should keep an eye on several key price levels on the Salesforce chart.

Monitor these important Salesforce chart layers

The first area to watch is around $287, a spot on the chart where we could see higher selling pressure near a trendline connecting the April 15 gap day high to a week-long consolidation phase that formed in mid- to late May.

Buying above that level could push the stock price as high as $311, where sellers could try to unload shares in March and early April at a range of comparable trading levels just below the stock's record high.

To predict a price target above the all-time high (ATH), we can use the measurement principle. To do this, we calculate the distance of the triangle in points and add that amount to the upper trendline of the pattern. In this case, we add $75 (distance between the two trendlines of the triangle) and $265 (upper trendline of the pattern), which projects an upside target of $340.

The upper trend line of the triangle changes to support

During the retracement, investors should keep an eye on the upper trendline of the symmetrical triangle, currently at $265. This spot on the chart is likely to turn from a previous resistance to a future support point as it also finds a convergence with the nearby upsloping 200-day MA.

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At the time of writing, the author does not own any of the securities mentioned above.