by Serge Berger | February 5, 2014 1:17 pm
Salesforce.com (CRM), the maker of on-demand customer relationship management software, has once again popped up on my radar given the relative strength it has displayed in recent weeks. Today the stock received an upgrade to a “Buy” rating from Roth Capital, and a price target of $80.
The cult stock and trend-follower favorite had another good year in 2013, but the upswing has definitely steepened the slope of the chart. Is CRM still a good buy after all its recent gains?
Through the lens of the below weekly chart looking back to 2009, CRM stock continues to act well as it works higher in a technically orderly manner. In September of last year the stock pushed past a multiyear resistance line (upper black line), which it retested in December, before shooting to a higher high in January.
Salesforce has not yet announced its earnings, which may be playing a part in the relative outperformance. Also, CRM stock is currently trading well above its 200-day simple moving average (red) — that doesn’t mean the stock can’t rise further, it simply means that the pace of price advance of the stock can’t continue at the 2013 pace for much longer.
I am pointing this out to see both sides and for risk-management purposes. Most recently CRM stock has found resistance near $61.20 – $61.50. If the stock eclipses that level, the $64 – $66 area is within sight for the near future.
I am not ragingly bullish on the stock, but I am impressed by the relative strength that CRM stock continues to show amid the current broad market selloff — these are the types of stocks that typically will act well on oversold bounces in the broader market.
Like what you see? Sign up for our daily Beat the Bell e-letter and get investment advice delivered to your inbox every morning!
Learn more about the strategies Serge Berger uses to create profits in the market every day. Download his trading plan in the Essence of Swing Trading e-book by clicking here. As of this writing, he did not hold a position in any of the aforementioned securities.
Source URL: http://investorplace.com/2014/02/crm-stock/
Short URL: http://invstplc.com/1nU6rka
Copyright ©2015 InvestorPlace Media, LLC. All rights reserved. 700 Indian Springs Drive, Lancaster, PA 17601.