On CNBC’s “Mad Money,” Jim Cramer said some of the fast-growing cloud stocks seemed “ready to roar.”
Analyzing charts based on technical analysis by Tim Collins, Cramer said ServiceNow Inc (NYSE: NOW) and Snowflake Inc (NYSE: SNOW) seemed to be “primed for a breakout,”
He added that this makes sense because these companies were labor-saving and could continue to work even if other technology companies start feeling the pressure due to accelerating inflation. America’s annual inflation rate edged up to a 13-year high of 5.4% in September, from 5.3% in the previous month, higher than market expectations of 5.3%.
See Also: 4 Top Cloud Stock Picks For The Second Half Of 2021
Cramer said Collins believes Snowflake could rally to as much as $360 by Thanksgiving and breach $400 by yearend, provided the Nasdaq Composite does not “totally fall apart.”
Cramer said Collins is more bullish on ServiceNow than Snowflake. He expects the stock to reach $750, while mentioning it has a resistance level around $680, which is close to its record closing of $681.10 on September 3. The “Mad Money” host added that it could take Snowflake a few tries before it breaches that level.
However, Cramer said if the stock breaks down below $610, Collins would “back away until it sinks to the mid $500s.”
See more from Benzinga
Click here for options trades from Benzinga
Why Ari Wald Prefers Netflix Over Disney Ahead Of Quarterly Earnings
Jim Cramer Suggests How To Play Earnings The Week Of October 18
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
