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.
