Adding Some Rack Space

• Posted by Greg Harmon
• on February 10th, 2015

No, I’m not starting a library. I’ve had plenty of books in my lifetime but with the eBook movement what is the point? But there are several reasons to add Rackspace. That is adding Rackspace Hosting ($RAX) to your stock holdings.

The stock went on a tear higher from mid-September through to the start of December. But for over two months it has just moved sideways in a range between 45 and 48.50. Tuesday’s price action has it peeking above the top of that resistance though. With the RSI moving higher and firmly in the bullish range, and a MACD that has just crossed up, the momentum indicators support continued upside.

The 50 day SMA has caught up to the price as well. It does not like to stay below that level. Now a break over the consolidation range gives a target of 63.50 on a Measured Move higher. There is over 8% short interest that could provide some fuel for a move higher, and be aware that the company reports earnings February 17th after the close.

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