Salesforce.com Resistance Ahead?

Published on Tuesday, 07 February 2012 09:24 Written by TradersHuddle Wire

New York, February 7th (TradersHuddle.com) - Shares of Salesforce.com, Inc. (NYSE:CRM) closed the trading session at $123.23 near its 200 day moving average currently set at $128.58. Salesforce.com's price action is below this important level, which makes the stock difficult to buy, as there will certainly be resistance as it approaches its 200 day moving average.

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.

Latest price action range, defined by a peaks and troughs algorithm places calculated support at $102.27 and calculated resistance at $124.79. These levels are being closely watched by traders, as they provide great reference points for the latest price dynamics in Salesforce.com shares.

Traders should evaluate their trade if they want to establish a position on Salesforce.com given the resistance could materialize as the stock approaches the 200 day moving average. A trade might materialize as the stock manages to break this important level, as it could be used as support going forward, however until the break materializes, traders need to exercise patience. Other levels that traders will be evaluating are the ones defined by the peak and troughs algorithm that provides great price action reference points.