Salesforce Inc. ( CRM) has been strong since making a low in December. Prices could double before too long if this torrid pace continues. The customer relationship management giant does not report earnings until the end of May, so let's review the latest charts to see if continued strength is a possibility.
In this daily bar chart of CRM, below, I can see that prices are clearly trading above the rising 50-day moving average line as well as above the rising 200-day line. Trading volume has been declining from early March, but the On-Balance-Volume (OBV) line has continued its rise and suggests that buyers of CRM have remained more aggressive than sellers. The Moving Average Convergence Divergence (MACD) oscillator has been in bullish territory since the middle of January.
In this weekly Japanese candlestick chart of CRM, below, I see a positive setup for further gains. The two most recent candles show us small upper shadows above $210, but prices look like they could close the week above $210 and thus refresh the uptrend. The slope of the 40-week moving average line is positive. The weekly OBV line has improved since early December. The MACD oscillator is in a bullish alignment above the zero line.
In this daily Point and Figure chart of CRM, below, I can see the charting software is projecting a potential upside price target in the $257 area.
In this weekly Point and Figure chart of CRM, below, I can see a price target in the $279 area.
Bottom line strategy: I favored the long side of CRM back on Jan. 23. I still favor the long side today. Raise stops to $189. The $257 area is my next price target. I have no special knowledge of what CRM will tell shareholders when it reports earnings next Wednesday.
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The firm, which considers itself an enterprise AI software company, reports earnings after Wednesday's close
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