Salesforce.com Broke Resistance

Published on Wednesday, 04 April 2012 07:40 Written by TradersHuddle Wire

New York, April 4th (TradersHuddle.com) - Shares of Salesforce.com, Inc. (NYSE:CRM) closed the session at $158.32 just above calculated resistance at $157.56. The stock effectively broke out and grasped the attention of momentum traders, which could eventually push the stock to a 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.

The stock was trading in a well defined range with support at $138.34 and resistance at $157.56. Given that this range was broken, traders will be closely monitoring Salesforce.com's price action to gather clues on the future 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 is still near the broken resistance level, traders will be focusing on the $157.56 level to see if the stock holds the breakout without rolling over.