(PRO Views are exclusive to PRO subscribers, giving them insight on the news of the day direct from a real investing pro. See the full discussion above.) NYSE insider Jay Woods is keeping an eye on two beaten-down software stocks — Salesforce and Snowflake — as they report earnings this week. Dow component Salesforce has tumbled 31% on the year, weighed down by fears of an artificial intelligence-induced disruption. Woods, chief market strategist at Freedom Capital Markets, believes that there is “a nice double bottom forming” in the stock — a chart pattern that could suggest a bullish reversal. While Salesforce is still “in a major downtrend,” Woods believes that the $167 level provides key support. “If we can break above $180 and close there, we should get a nice run to $210. So risk-reward stay above $167. Let’s see if we can break the 50-day moving average and go to $210,” he added. Shares were last up 0.9% on Tuesday afternoon, trading around $181. Woods is also watching Snowflake, which he said looks a little more positive and has broken a recent downtrend. The stock is down 18% year to date. “Risk-reward setup looks somewhat favorable. On a run, look for $202 — again, that 200-day moving average — we get a lot of stocks under that average go back, mean revert, and give you a nice near-term gain. So watch Snowflake on a rally, $202 resistance. If it does break, there’s near-term support at $154. I would like to see that hold. If not, $142 is your level,” Woods said. Snowflake shares were last up more than 3% at around $178. Both Snowflake and Salesforce are slated to report Wednesday after the closing bell. (Watch full video above.) Veteran trader Woods also touches on the following in his video: The key level to watch on the S & P 500 to see if the index can take another leg higher. What Thursday’s personal consumption expenditures price index report could mean for new Fed chair Kevin Warsh. (This weekly video is exclusively for CNBC PRO subscribers.)
