Business is the most powerful force for social change, Jim Cramer told viewers of Mad Money Wednesday night. That's why he checked in with Marc Benioff, CEO of Salesforce.com (CRM) , to learn more about Benioff's efforts to combat COVID-19.
Benioff said it's incumbent on businesses to use their relationships and resources for the greater good and to alleviate suffering. That's how he was able to work with Alibaba (BABA) and others to deliver over 50 million pieces of personal protective equipment to the San Francisco Bay Area,
Benioff added that in addition to the biological challenge, we're also facing an economic one, which is why he's taken a 90-day pledge not to lay off any employees until we can see what the recovery will look like.
Let's check and see what the charts look like now.
In this daily bar chart of CRM, below, we can see how prices broke the lows of October and August in the March plunge. Prices bounced and then made a retracement or retest earlier this month. Prices are still below the declining 50-day moving average line and the declining 200-day moving average line, but maybe not for too much longer.
It looks like the On-Balance-Volume (OBV) line has been bottoming out since the middle of March and that tells me that sellers of CRM are no longer being very aggressive. The Moving Average Convergence Divergence (MACD) oscillator crossed to the upside last month for a cover shorts buy signal and it continues to improve this month.
In this weekly bar chart of CRM, below, we can see the longer-term uptrend over the past three years. In early 2020 CRM broke out to the upside of a consolidation pattern to make new highs but then the weakness in the broad market plunged prices back down. Yet, the late 2018 lows held.
Prices are below the slightly declining 40-week moving average line. The weekly OBV shows only a small February-March decline and not months of weakness. The MACD oscillator is part of the way below the zero line but it has begun to narrow so any possible sell signal may be of a limited duration.
In this first Point and Figure chart of CRM, below, we used daily price data to construct the chart. Here we can see a projected upside price target of $163. Not new highs, but going in the right direction.
In this second Point and Figure chart of CRM, below, we used weekly close only data and a traditional even dollar increment for the scaling. Here we see a potential upside price target of $179. Better than $163.
Bottom line strategy: CRM has been hammering out a bottom since the middle of March. With upside price targets of $163 and $179 from the Point and Figure charts (above), traders could probe the long side of CRM at current levels and on strength above $155. Risk a close below $137 for now.