Reference Points for Rackspace

Published on Monday, 16 January 2012 11:52 Written by TradersHuddle Staff

New York, January 16th (TradersHuddle.com) - Shares of Rackspace Hosting, Inc. (NYSE:RAX) closed the trading day at $43.35 close to its 50 day moving average currently set at $42.63. Rackspace's price action is just above this important support level translating into a trading opportunity.

Rackspace Hosting, Inc. (NYSE:RAX) operates in the hosting and cloud computing industry. It provides managing Web-based IT systems for small and medium-sized businesses, as well as large enterprises worldwide. Its service suite includes dedicated hosting comprising managed hosting service that manages data center, network, hardware devices, and operating system software; private cloud service, which enables large enterprises to virtualize their IT environments.

Looking at peaks and troughs horizontal support and resistance levels, we can see current calculated support at $41.37 and calculated resistance at $45.45. These levels should also be evaluated by traders when planning their trades, as they provide an insight into the latest price action.

Traders wanting to establish a position on Rackspace will be looking at the price action for evidence of buying near the 50 day moving average, and opening a position as close as possible to this important level. Also traders will be looking at the latest price action, via the stocks current range previously defined for insights of other key levels that might affect their upside or downside.