Salesforce.com, Inc. (CRM) is trading just a few dollars below its September/October peak and new highs look likely in the weeks ahead. Let's review our charts and indicators to see if this is a good time to "add on strength" to your long position.
In the daily bar chart of Action Alerts PLUS holding CRM, below, we can see that prices are trading above the rising 50-day moving average line and the long-time bullish 200-day line. The price strength in January pushed CRM above its early December peak to refresh the uptrend. The only chart resistance around is the $135-$161 area from a few weeks in September and early October. This is not a massive area of resistance, in my opinion.
The daily On-Balance-Volume (OBV) line is leading the way to a new price high as this indicator has already made a new high. The trend-following Moving Average Convergence Divergence (MACD) oscillator crossed the zero line earlier this month for an outright go long signal.
In the weekly bar chart of CRM, below, we can see the strong rise of the last three years. The price action of the last few months does not look like a top pattern but rather just a correction in a longer-term bull. Prices are above the rising 40-week moving average line.
The weekly OBV line is almost at a new high for the long move up and the weekly MACD oscillator crossed to a fresh outright go long signal.
In this Point and Figure chart of CRM, below, we can see the base pattern. We can see the breakout at $147.95 and the upside price target of $167.60 -- a new all-time high.
Bottom-line strategy: CRM is technically ready to make a new high. Traders can add to longs here and traders who have no position could go long here. Risk a close below the 200-day and 50-day moving averages. The $168 area is our first upside price target.
Jim Cramer discussed CRM on his latest Action Alerts PLUS conference call. Click here to access the call and learn more about AAP.