In his second "Executive Decision" segment of Mad Money Tuesday night, Jim Cramer sat down again with Marc Benioff, chairman and co-CEO of Salesforce.com (CRM) , at the kickoff of the company's annual Dreamforce user's conference in San Francisco.
Benioff said over 171,000 people will be in attendance at this year's event and they all come to learn more about the $1 trillion economy that's being built around the Salesforce platform. The company has many innovations and announcements scheduled for Dreamforce this year, including a smart speaker for built in partnership with Amazon (AMZN) , which allows users to speak directly to Salesforce's Einstein smart assistant.
This sounds wonderful but let's see what the charts are up to.
In the daily bar chart of Action Alerts PLUS holding CRM, below, we can see that prices are pushing up toward a new high close. There is just a little bit of overhead resistance from March and April and it doesn't look significant. In other words prices should be able to break out to new highs. CRM is above the rising 50-day moving average line as week as the rising 200-day line.
The On-Balance-Volume (OBV) line has been rising since August telling us that buyers of CRM have been more aggressive. This is a big improvement from the situation from March to early August.
The Moving Average Convergence Divergence (MACD) oscillator turned bullish again at the end of October.
In this weekly bar chart of CRM, below, we can see that prices are back above the rising 40-week moving average line. The weekly OBV line is bullish and the MACD oscillator is positive.
In this Point and Figure chart of CRM, below, we can see that a trade at $168.38 will be a triple top breakout and refresh the uptrend. A potential price target of $197 is being indicated.
Bottom-line strategy: If CRM can make a new high close on a significant increase in volume then traders will want to follow that signal. If you see that happen in the days ahead you should go long risking a reversal back below $159. The $200 area is our longer-term price target.