, Inc. (CRM), a leading developer of enterprise cloud computing applications, is a strong momentum stock that has rallied above the clouds. The stock is up 56.8% year to date and is solidly in bull market territory at 61.6% above its post-election low of $66.43 set on Dec. 12. The stock set its all-time intraday high of $109.00 on Nov. 20.

This strength will be put to a test when the company reports earnings after the closing bell on Nov. 21. Analysts expect Salesforce to post earnings per share 37 to 38 cents. Strong year-over-year comparisons are expected for both earnings and revenue growth. A software relationship with Alphabet Inc. (GOOG​) helps, but heavy investment in sales and marketing has been a drag on profits. (See also: How Salesforce CRM Works.)

The daily chart for Salesforce

Daily technical chart showing the performance of, Inc. (CRM) stock

Courtesy of MetaStock Xenith

The daily chart for Salesforce shows that the stock has been above a "golden cross" since March 3, when it closed at $82.22. A "golden cross" occurs when the 50-day simple moving average rises above the 200-day simple moving average, indicating that higher prices lie ahead. Notice how the stock tracked its 50-day simple moving average higher between March 27 and Sept. 29, when upward momentum went into parabolic mode.

The weekly chart for Saleforce

Weekly technical chart showing the performance of, Inc. (CRM) stock

Courtesy of MetaStock Xenith

The weekly chart for Salesforce is positive but extremely overbought, with the stock above its five-week modified moving average of $102.18 and well above its 200-week simple moving average, also known as the "reversion to the mean," now at $72.79. This key average was last tested at $54.49 during the week of Feb. 12, 2016. The 12 x 3 x 3 weekly slow stochastic reading is projected to rise to 93.21, up from 91.89 on Nov. 17 – this is well above the overbought threshold of 80.00 and above 90.00, which defines an "inflating parabolic bubble."

Given this chart and analysis, my trading strategy is to buy weakness to my semiannual and quarterly value levels of $95.95 and $92.21, respectively, and to reduce holdings on strength to my weekly risky level of $111.28. (For more, see: Why Salesforce Is the Top Cloud Pick: Guggenheim.)