Salesforce.com Hammered A Bottom For Traders To Go Long – TheStreet

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Business is the most powerful force for social change, Jim Cramer told viewers of Mad money Wednesday evening. This is why he consulted Marc Benioff, CEO of Salesforce.com (CRM), to learn more about Benioff’s efforts to fight COVID-19.

Benioff said companies have a responsibility to use their relationships and resources for the greater good and to relieve suffering. This is how he was able to work with Alibaba (BABA) and others to deliver more than 50 million personal protective equipment to the bay of San Francisco,

Benioff added that in addition to the biological challenge, we also face an economic challenge, which is why he made a 90-day commitment not to lay off any employees until we can see what the reprise.

Let’s check and see what the graphics look like now.

In this daily CRM bar graph below, we can see how prices crossed October and August lows during the March drop. Prices rebounded, and then retraced or retested earlier this month. Prices are still lower than the 50-day decreasing moving average line and the 200-day decreasing moving average line, but perhaps not too long.

It seems that the On-Balance-Volume (OBV) range has reached a low since mid-March and this tells me that CRM sellers are no longer very aggressive. The MACD (Moving Average Convergence Divergence) oscillator rose last month for a signal to buy blankets and it continues to improve this month.

In this weekly CRM bar graph, below, we can see the long-term uptrend over the past three years. In early 2020, CRM erupted on the upside of a consolidation model to reach new heights, but the weakness of the market drove prices down. However, the lows at the end of 2018 continued.

Prices are below the moving average slightly down 40 weeks. The weekly OBV shows only a slight drop from February to March and not months of weakness. The MACD oscillator is part of the path below the zero line, but it has started to shrink, so any possible sell signals may be of limited duration.

In this first CRM point and figure graph, below, we used daily price data to build the graph. Here we can see a projected upward price target of $ 163. No new heights, but in the right direction.

In this second CRM point and figure graph, below, we used weekly closing data only and a traditional even dollar increment for scaling. Here we see an upside potential price target of $ 179. Better than $ 163.

Result strategy: The CRM has hollowed out since mid-March. With price targets rising by $ 163 and $ 179 in the point and figure charts (above), traders could probe the long side of the CRM at current levels and on a force above $ 155. Risk a close below $ 137 for now.

(Salesforce is a participation of the Jim Cramer Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells CRM? Learn more now.)

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