When I recently reviewed Salesforce.com (CRM) I wrote that "With the new price high on CRM the $150-$145 area should now become support and longs should risk below $140. CRM could trade in the $155-$150 area for a week or so before trending higher. Trade CRM from the long side risking below $140 looking for a rally to the $190-$200 area in the months ahead."
Well, CRM has traded in the $155-$150 area a few days and we could see this tight trading range continue a bit longer. Let's check the charts again to see if everything is still "on track" for this Cloud King discussed by Jim Cramer on Real Money.
In the daily bar chart of Action Alerts PLUS holding CRM, below, we can see no deterioration in our indicators as they remain strong. Prices are the rising 50-day and the bullish 200-day moving averages. The daily On-Balance-Volume (OBV) line is bullish and has been rising the past twelve months. A rising OBV line tells us that buyers of CRM have been more aggressive.
The Moving Average Convergence Divergence (MACD) oscillator has been above the zero line since late April and is still bullish but we may see a take profits signal in the days ahead.
In this weekly bar chart of CRM, below, we see a bullish picture. Prices are above the rising 40-week moving average line. The weekly OBV line shows an advance from late 2016. The weekly MACD oscillator has been bullish since early 2017.
In this Point and Figure chart of CRM, below, we have a price target of $189 being projected.
Bottom-line strategy: Continue to hold longs with traders risking below $140 while looking for gains into the $190-$200 area in the months ahead.