Has It Stopped Raining On The Cloud Computing Stocks?
Many of the leading cloud computing stocks have come under some sharp selling pressure throughout the month of December. Cloud computing leaders such as Salesforce.com inc (NYSE: CRM) and VMWare Inc (NYSE: VMW) have been extremely weak. These stocks are holding up well today considering the major stock indexes are coming under some selling pressure this morning. CRM is still trading above its recent low that was made on December 21, 2011 at $94.09 a share. If this stock fails to hold this level on a closing basis it could signal that further declines are coming. CRM is trading below all of its important daily chart moving averages which puts the stock in a weak technical position on the charts. The chart of VMW is a little bit better at this time. VMW is trying to form a higher low pullback pattern on the daily chart, this is a short term bullish formation. The stock still has major overhead resistance around the $86.00 and $92.00 levels.
Some leading cloud computing stocks that are holding up well today include Citrix Inc (NASDAQ: CTXS), Riverbed Technologies Inc (NASDAQ: RVBD), and Aruba Networks Inc (NASDAQ: ARUN). All of these stocks still face many headwinds on the daily charts, however, they are all trading above the December 21, 2011 low. As long as they hold above this area they have a chance to bounce slightly higher in the early part of the new year.
Nicholas Santiago
InTheMoneyStocks.com
