• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing
  3. / Stocks

Salesforce Draws an Activist's Interest, So Should You Go Long?

Let's check the charts and indicators as Elliott Management takes a stake.
By BRUCE KAMICH
Jan 23, 2023 | 07:29 AM EST
Stocks quotes in this article: CRM

Salesforce  ( CRM)  shares are trading higher in pre-market activity here on Monday on the heels of a Wall Street Journal article that activist investor Elliott Management has taken a "multi-billion dollar stake" in the software firm. 
 
In my Jan. 4 review of CRM I wrote, "Bottoms are a process just as a corporate turnaround is a process. I would let the process play out for now."
 
Let's check out the charts and indicators of Salesforce again. 
 
In this daily bar chart of CRM, below, I see that prices have firmed above the 50-day moving average line. The slope of the 50-day is bottoming. The slope of the 200-day line is still negative and intersects just above $160. The On-Balance-Volume (OBV) line made a low in December and shows improvement in January. The Moving Average Convergence Divergence (MACD) oscillator is bullish now. 
 
 
In this weekly Japanese candlestick chart of CRM, below, there is improvement from our last review. Prices are still below the declining 40-week moving average line but we could see a test of that line in the days ahead. Trading volume has increased in recent weeks and that could be the action of Elliott Management. The weekly OBV line shows an increase from early December. The MACD oscillator has turned up for a cover shorts buy signal. 
 
 
 
In this daily Point and Figure chart of CRM, below, I can see a price target in the $195 area. 
 
 
 
In this weekly Point and Figure chart of CRM, below, I can see the same price target as the daily chart -- $195. 
 
 
 
Bottom line strategy: News of a purchase by an activist investor is like hearing of news that Warren Buffett has made a purchase. It gets a lot of people to look differently at the company. CRM is probably going to rally, so the question to me is what to risk if you go long. I would risk a close below $139. Stay nimble. 
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Software & Services | Technology

More from Stocks

A Roundabout on Wall Street

James "Rev Shark" DePorre
Jun 8, 2023 4:25 PM EDT

The big caps turn out big again, with Apple, Microsoft and Nvidia at the wheel.

Ignore Carvana's Backseat Drivers

Ed Ponsi
Jun 8, 2023 1:09 PM EDT

I'll take a ride with CVNA, but I will wear my safety belt -- and know when to get out.

GameStop Needs to Unlock a Secret Door to a New Business

Stephen Guilfoyle
Jun 8, 2023 12:27 PM EDT

After another GME earnings blunder and change of players, I see the stock as this: pure speculation with a strong balance sheet. But I believe the company can find a way to the next level -- though it could get zapped before getting there.

Here's a Stock I'm Watching as the Rotation Gets Stuck in Reverse

James "Rev Shark" DePorre
Jun 8, 2023 11:46 AM EDT

I'm eyeing this biotech name as the Nasdaq 100 moves up -- again -- and small calls slip.

Want a Way Out of Taxes? Look to This Exchange-Traded Fund

Mark Abssy
Jun 8, 2023 11:30 AM EDT

If you are looking for completely tax-free income, check out the X-Square Municipal Income Tax-Free ETF.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 07:19 PM EDT CHRIS VERSACE

    AAP Podcast: This Company Is Not Going 'Solo'

    Listen in as I talk with the very diversified Solo...
  • 01:51 PM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    Adjusting Your Trading Approach to Shifting Market...
  • 06:54 PM EDT CHRIS VERSACE

    AAP Podcast: A Tongue -- and a Market -- Twister: 'Get a Debt Deal Done'

    Listen in as the Action Alerts PLUS Podcast tackle...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login