For his second Executive Decision segment of Tuesday's "Mad Money" program, host Jim Cramer spoke with Marc Benioff, co-founder and co-CEO of Salesforce.com (CRM) , which saw its shares bounce higher after the closing bell Tuesday as the cloud software provider reported solid fourth-quarter results.
Benioff said it was an extraordinary quarter for Salesforce. He also was bullish about Salesforce's recent partnership with Ford Motor (F) , saying that together the pair are turning F-Series pickups into mobile offices that offer whole new ways to engage with customers.
Benioff also said there's no finish line when it comes to making great acquisitions. He said all his company's recent deals, such as acquiring Tableau Software and Slack, have been fully integrated into the Salesforce platform.
In our Jan. 10 review of the charts of Salesforce we wrote, "We find no technical reasons yet to recommend purchase or repurchase of CRM. Continue to avoid the long side."
Let's check out the charts and technical indicators of CRM again
In this daily bar chart of CRM, below, we can see that Salesforce remained weak into late February. CRM bounced to the upside in the past few sessions but it is still trading below the declining 50-day moving average line and the negatively sloped 200-day line. The On-Balance-Volume (OBV) line has been in a decline since November, telling us that sellers of CRM are more aggressive. The OBV line shows a small turn to the upside in late February and we will need to wait and see if this shift continues. The Moving Average Convergence Divergence (MACD) oscillator has crossed to the upside for a cover shorts buy signal but an outright buy signal is not at hand.
In this weekly Japanese candlestick chart of CRM, below, we can see a possible bullish engulfing pattern in February. Bullish confirmation is not quite there yet but that could change. The weekly OBV line is showing a hint of improvement and the MACD oscillator is narrowing, which suggests that the trend strength could be improving.
In this daily Point and Figure chart of CRM, below, we can see that prices reached and exceeded a downside price target of $205.
In this second Point and Figure chart of CRM, below, we used weekly price data. Here we can see that prices reached a downside price target of $193.
In this third and last Point and Figure chart of CRM, below, we used weekly close-only price data. Here the software suggests a downside target of $89.
Bottom line strategy: CRM could see a rebound rally back up into the $240-$255 area, but without a new base formation in place I do not expect the rally to be sustained. Nimble traders could play the bounce if they desire, but investors should remain patient.
