Approaching Resistance - Salesforce.com

Published on Wednesday, 08 February 2012 07:40 Written by TradersHuddle Wire

New York, February 8th (TradersHuddle.com) - Shares of Salesforce.com, Inc. (NYSE:CRM) are trading very close to calculated resistance at $124.79 with the current price action closing at just $122.80 placing the stock near levels that make it difficult to buy.

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 current stock range is defined by current calculated support defined at $102.27 and by the resistance level at $124.79, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Salesforce.com, as the stock is well above support, however, as the stock pulls back towards $102.27 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $124.79 then traders will get an opportunity to enter Salesforce.com stock by establishing a position as the stock moves to a higher range.