On "Mad Money" Tuesday night, Jim Cramer spoke with Keith Block, co-CEO of Salesforce.com (CRM) , the cloud computing giant that dipped 1.8% on a strong quarter that included some weaker-than-expected guidance. Prices have continued lower on Wednesday.
Block discussed Salesforce's plan to double the size of the company to $34 billion in revenues over the next four years. He said this exceptional growth continues to be powered by the digital transformation and shows no signs of slowing.
Block also assured investors that there's still plenty of innovation at Salesforce, both organically, with products like Einstein Voice, and inorganically, with acquisitions like Mulesoft and most recently Tableau Software.
Let's check out our updated charts of CRM.
In this daily bar chart of CRM, below, we can see that prices turned lower from the middle of November at the same area that halted prices in March and April. Prices are now in a position to test and perhaps break the flat 200-day moving average line as well as the rising 50-day moving average line. Trading volume is not showing us anything unusual, but the daily On-Balance-Volume (OBV) line shows a small peak in November and its recent decline tells us that sellers of CRM have become more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is still above the zero-line in positive territory and just crossed to the downside for a take profits sell signal.
In this weekly bar chart of CRM, below, we can see that prices are testing the slightly rising 40-week moving average line. The weekly OBV line is flattening out the past few weeks but the MACD oscillator is still rising above the zero-line.
In this Point and Figure chart of CRM below, we can see that a trade at $153.96 will be a new low for the current move down and could precipitate further weakness. The chart still shows a potential upside price target of around $196.
Bottom line strategy: The sum total of charts and indicators on CRM are mixed, but starting to lean to the downside. I feel that the technicals on CRM have been whipping me around the past half-year or so. I am taking a break from suggesting trades on CRM until I feel more confident.