Salesforce stocks could see more weakness during the new year

During the Lightning Round segment on Tuesday Mad Money one person who called asked Jim Cramer about Salesforce.com CRM. “Salesforce has increased today, but there is still a long way to go,” Cramer responded.

We reviewed CRM earlier this month on December 3 and wrote that, “I’ve been looking at CRM charts for a few years now and they remind me of a cat with nine lives as the uptrend continues and continues. Can CRM restart it?” this time I have an upward trend? I’m not convinced and I can’t find enough technical clues to recommend a new long position. ”

Let’s look at the CRM charts again.

Then in the updated daily CRM bar chart, we can see that prices have been tough this month. CRM is trading below the declining 50-day mobile line, but remains above the 200-day rising line. The Equilibrium Volume Line (OBV) is still showing an uneven decline since late August, indicating to us that CRM marketers have been more aggressive.

The Moving Average Convergence Divergence (MACD) oscillator is below the zero line and only handles a short buy signal at this time.

In the weekly CRM bar chart, below, we see a mostly negative image. It is possible that stocks have formed a bearish flag pattern: prices have fallen sharply followed by a higher decline before another lower shot. Trading volume is usually intense downward and is much lighter when drifting upwards. The OBV line shows a peak in August and so far only an “increase” in December.

The MACD oscillator is in a profit selling mode.

Then, in this daily dot and CRM charts chart, the software reads the activity from September (look for the “9” in the chart) as a distribution or sale. There’s a significant downside price target in the $ 166 area and I’m not so sure the other charts are that bearish.

Fund strategy: CRM charts show weakness since September and I don’t find enough technical evidence to indicate that the decline is over. We will remain defensive for now.