Buy Salesforce And Motorola Solutions

The rally last week included a breadth thrust. The percentage of rising stocks was strong enough to trigger this new buy signal. This increase derived from buying in lagging areas such as the S&P 400 and 600. Higher prices lie ahead. The stock selections look forward to August.

Salesforce
CRM
is highly ranked in the Cycles Research screens. We see below that relative strength has been rising all year. Monthly, the stock is not overbought at this point. August has been a strong month for this stock. It has risen 63% of the time for a 3.6% gain. The stock has been the strongest in the S&P in August. The monthly dynamic price cycle also points up through August. This combination of a strong technical position, favorable seasonality, and a rising monthly cycle are constructive. The $275 level is the next price target.

Salesforce Daily, Weekly, Monthly

Salesforce Monthly Histogram

Salesforce Monthly Graph

Motorola Solutions is also well-rated. Note the big reversal to the upside in relative strength in the monthly graph below. The monthly histogram reveals that July and August have been the two strongest months to hold the stock over the last 44 years. Price has risen in August over 65% of the time. The dynamic cycle also rises in August. However, September and October have been weak, so book profits at the end of August. Price could reach $310 or higher.

Motorola Solutions

MSI
Monthly

Motorola Solutions Monthly Histogram