In his first "Executive Decision" segment of Tuesday's Mad Money program, Jim Cramer spoke with Marc Benioff, chairman and CEO of Salesforce.com (CRM) , who was in the middle of the company's annual Dreamforce user conference.
When we checked out the charts of CRM on Aug. 26 we wrote that "CRM is trading higher in pre-market activity. We could see prices open with a gap higher. Traders could raise stop protection to $242 from $235. The $312 area is our first price target."
Let's see how things are going now.
In the updated daily bar chart of CRM, below, we can see that the shares soared into late August and then have corrected lower probably with the weakness in the broader market. Prices are still trading above the rising 50-day moving average line as well as the rising 200-day moving average line.
The On-Balance-Volume (OBV) line has moved up from July to September as traders have been more aggressive buyers. The Moving Average Convergence Divergence (MACD) oscillator has weakened in September but has also narrowed suggesting a new buy signal could be coming.
In the weekly Japanese candlestick chart of CRM, below, we can see some mixed action. On one hand, there are a couple of upper shadows above $270, which suggests that traders have been rejecting those prices. We still do not see a clear top reversal pattern and bearish confirmation so with prices above the rising 40-week moving average line we need to think like longer-term bulls.
The weekly OBV line shows gains and the MACD oscillator is still pointed up.
In this daily Point and Figure chart of CRM, below, the software is "reading" the X's and O's and projecting a potential downside price target in the $233 area.
In this weekly Point and Figure chart of CRM, below, we can see an upside price target in the $311 area.
Bottom-line strategy: When the charts turn a little mixed it is often best to stand back and look at the trend again. The trends on CRM are still bullish and still above the moving averages. Things can always change but for now traders should continue to hold the longs recommended in prior reviews. Stops could be raised from $242 to $249.