For his second "Executive Decision" segment of Mad Money Thursday night, Jim Cramer also spoke with Marc Benioff, CEO of Salesforce.com (CRM) , which reported a weaker than anticipated quarter with disappointing guidance.
Benioff said there were a lot of unknowns going into this quarter. He said it's time to start reopening the economy, but only if we can do it safely. That's why Salesforce has partnered with many great companies to offer Work.com as a resource for companies to plan putting people back to work.
When asked about their business, Benioff touted AT&T Wireless (T) as a big win for his company. He said AT&T will be using Salesforce to make sure that their representatives have all of the information on who they are talking to.
We looked at CRM earlier this month and wrote that, "Longs should raise sell stop protection to a close below $145 now. $173 and then $197 are our price targets." Let's check the charts of CRM again now that our $173 price target has been exceeded.
In this daily bar chart of CRM, below, we can see that prices have continued higher from their March low. Prices are above the rising 50-day moving average line and the rising 200-day moving average line. We could see a bullish golden cross of these two averages in the days ahead.
The daily On-Balance-Volume (OBV) line continues to rise telling us that buyers of CRM are more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is bullish.
In this weekly bar chart of CRM, below, we can see that prices are still in a very long sideways consolidation pattern going back about two years. Let's call the $150 area the center and that will give us a possible $300 price target (a double) when prices finally break out to new highs.
The slope of the 40-week moving average line is positive. The OBV line is slowly rising and the MACD oscillator just gave us a new buy signal.
In this first Point and Figure chart of CRM, below, we used daily price data with a percentage move scaling. Here we can see a nearby price target in the $197 area.
In this second Point and Figure chart of CRM, below, we used daily price data again but with a traditional even dollar amount for scaling. Here we can see a potential price target of $235.
Bottom line strategy: Continue to hold longs recommended earlier this month. Raise sell stop protection to a close below $165 now. Our targets are $197 and then $235 with $300 a longer-term objective.