For his fourth and final "Executive Decision" segment of Mad Money Wednesday night, Jim Cramer checked in Marc Benioff, CEO of Salesforce.com (CRM) , a company answering the call to help stop the pandemic.
Benioff said that while no one can do everything, everyone can do something. He reiterated that business is the greatest platform for change. The company has built applications for the CDC and is actively using its Work.com platform to facilitate company reopening and contact tracing.
Benioff also helped facilitate the delivery of personal protective equipment, filling 747's with supplies and sending them to New York City and other locations. The latest plane is currently being filled for India.
When we looked at CRM back on Feb. 26 we wrote that "CRM is weakening and could test/break its January low. This weakness, should it occur, is likely to precipitate further declines. Avoid the long side for now." Prices declined into early March and did break the January low. CRM retested the early March low and has seen a recovery this month.
Let's check out the CRM charts again.
In the updated daily bar chart of CRM, below, we can see that the shares have been in a downward-sloping channel from early September and it looks like CRM is breaking out on the upside of the channel. Prices are trading above the bottoming 50-day moving average line and above the rising 200-day line.
The daily On-Balance-Volume (OBV) line is showing new strength from early March, which tells us that buyers have turned more aggressive. The Moving Average Convergence Divergence (MACD) oscillator crossed above the zero line earlier this month for an outright buy signal.
In the weekly Japanese candlestick chart of CRM, below, we see a turnaround situation. Prices have rallied back above the rising 40-week moving average line.
The weekly OBV line has been weak since September but that downtrend might soon get broken. The MACD oscillator is turning upward for both a cover shorts buy signal and an outright buy signal as it crosses back above the zero line.
In this daily Point and Figure chart of CRM, below, we can see that prices are ready to break a downtrend (line not drawn). A potential upside price target in the $292 area is being projected.
In this weekly Point and Figure chart of CRM, below, we can see a $292 price target for this time frame.
Bottom-line strategy: It is wonderful that Salesforce is generous but a rising stock price is what I want to focus on. Traders could go long CRM at current levels and on a dip to $230 if available. Risk to $215 for now. The $292-$300 area is our price target for now.