Ride This Oversold Cloud Stock Favorite Back Up

After a 28% sell-off, CRM's chart has turned bullish

   
Ride This Oversold Cloud Stock Favorite Back Up

Salesforce.com (CRM) — This software company is a leading provider of enterprise cloud computing solutions.

In late February, Credit Suisse (CS) increased its price target for CRM from $65 to $80, saying it was one of its “top picks for 2014.” A month later, S&P raised its fiscal year 2015 (ending in January) earnings estimate to $0.50 from $0.04, and increased its 12-month target to $66 from $39. And earlier this month, Deutsche Bank (DB) upgraded the stock to a “buy” with a 12-month target of $65.

CRM fell 28% from its February high to its low in late April, hit hard like many of the cloud stocks. But the chart appears to be turning up. A strong MACD buy signal, coupled with a “buy” from our internal indicator, the Collins-Bollinger Reversal (CBR), have driven the stock through its bullish resistance line. It now threatens to break through its 200-day moving average at $54.10.

Massive support from analysts should keep buyers focused on this oversold cloud favorite. Buy CRM with a trading target of $60. Long-term buyers could be rewarded with much higher returns.

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Article printed from InvestorPlace Media, http://investorplace.com/2014/05/trade-day-salesforce-com-crm/.

©2014 InvestorPlace Media, LLC

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