Trading Idea - Salesforce.com Broke Resistance, What to Expect?

Published on Tuesday, 16 March 2010 18:28 Written by Danny Miller

New York, March 16th (TradersHuddle.com) - Shares of Salesforce.com, Inc. (NYSE:CRM) closed the trading session at $76.69 just above calculated resistance at $76.38 effectively breaking out, grabbing the attention of momentum traders, which could eventually push the stock to different trading range

Salesforce.com, Inc. (NYSE:CRM) supplies a customer relationship management service to businesses worldwide providing a technology platform for customers and developers to build and run business applications. Clients use Salesforce.com to manage their customer, sales and operational data.

Salesforce.com's stock was trading in a well defined range with support at $64.77 and resistance at $76.38, given that this range was broken traders will be closely monitoring the stock?s price action for clues of direction.

From a technical perspective it can be expected that previous resistance becomes support, as the new range gets defined, however, given that Salesforce.com's stock is still near the broken resistance level, traders will be focusing on $76.38 to see if the stock holds the breakout without rolling over.