Trading Idea: - Is Salesforce.com close to Resistance?

Published on Thursday, 04 October 2012 07:40 Written by TradersHuddle Wire

New York, October 4th (TradersHuddle.com) - Shares of Salesforce.com, Inc. (NYSE:CRM) are trading very close to calculated resistance at $161.90. The stock ended the trading session at just $157.04, which is near levels that make it difficult to buy or start a position.

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 range is defined by its calculated support defined at $146.22 and by the resistance level at $161.90; the stock is clearly over-extended from support, making it harder for participants to establish fresh longs.

Traders don't have a clear entry point for Salesforce.com. However, as the stock pulls back towards $146.22 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $161.90 then traders will get an opportunity to enter the stock as it moves to a higher range.