RAX - Rackspace Hosting, Inc. (NYSE)

[StockCharts]

Company Background

Rackspace Hosting, Inc. (Rackspace Hosting), incorporated on March 7, 2000, is engaged in the business of hosting and cloud computing. The Company's services are sold to businesses in more than 120 countries. The Company sells a suite of hosting and cloud computing offerings, all backed by Fanatical Support.

I was in the live chat during market hours and someone asked me to take a look at RAX. Quicky I saw a double top on the weekly chart and decided to jump in. It closed above the $12.50 resistance, but not by a lot. This could make a nice move up from here, but may want to wait a day for confirmation unless you are an aggressive trader.

[JamesCarter]

RAX chart does look bullish, it's hit the 52 week high this week too, good find!
Pivot Point: $13.19

[StockCharts]

RAX

San Antonio-based Denim Group has entered into a consulting services agreement with Rackspace Hosting Inc.

The agreement calls for Denim Group to provide application security services for Rackspace and its clients. This includes conducting code reviews, delivering secure software development training and evaluating software development strategies.

“For companies looking to migrate to hosted and cloud applications, Denim Group can help evaluate and recommend security strategies in this new business paradigm,” John Engates, chief technology officer of Rackspace Hosting says. “Our relationship with Denim Group allows us to extend our consulting services to provide deeper offerings in the application security services market. Denim Group has a track record of proven delivery with Rackspace, and the fact that we’re both located in San Antonio makes this relationship even more beneficial.”

Rackspace (NYSE: RAX), headquartered in San Antonio, provides managed information technology hosting services, including Web-site hosting as well as e-mail, application and storage hosting.

[StockCharts]

In a blog post, RAX said it suffered another power problem:

Today at approximately 11:00 AM, an electrical connection failed, causing a brief power interruption to customers on UPS cluster A. This failure also may have caused intermittent network performance issues for customers supported by UPS clusters B and E for a short time.

For cluster A customers, we bypassed the UPS and restored power to the servers via generator within a few minutes. Currently systems supported by UPS cluster A are still running on generator power. Repairs are underway and we plan to return to utility power with UPS support as soon as possible.

I guess this would be the reason why RAX took such a hard hit these days.

[StockCharts]

I was in the live chat during market hours and someone asked me to take a look at RAX. Quicky I saw a double top on the weekly chart and decided to jump in. It closed above the $12.50 resistance, but not by a lot. This could make a nice move up from here, but may want to wait a day for confirmation unless you are an aggressive trader.

RAX - Rackspace Hosting $18.81 high of day!

NEW CHART

It's not over yet, wait and see if it breaks $19.00 and if it holds, take another position and ride the bull!

OLD CHART

[johnsonfredral]

thanks for postings

[StockCharts]

thanks for postings

No prob.

RAX all time high since last update: $23.51 current price: $20.41

Cloud hosting is getting popular and RAX is one of the smaller companies that has much room to grow and would make a nice long term investment.

[RiverCode]

RAX owns SliceHost as well.

Cloud hosting is catching on fast, but there are other cloud giants out there such as IBM, should take a peek at them too.

[Cocky26]

Hey Stockcharts, do you still think RAX is a good long term investment?

I got in recently at 17.00and its down a little, should i be worried?


Any feedback much appreciated, Thanks --

[StockCharts]

RAX had made a nice run, but around April 26th after it broke the 38% fib and the 50 MA, it was a sign the fall wasn't over.

The global economy isn't really doing very well at the moment, but cloud hosting is still the way to go.. . we just need to find the bottom.

If you got it at $17 and its not heading the direction you thought it would, I personally would just sell. I'm guessing you got in some where between 11th-18th of May?

You see how there where so many red days? Some people may guess thats the bottom since it's touching support, but when you see the 19th's candle, it got up to $17 and fell right back down only to be slightly higher then the previous day. There just isn't enough interest in RAX at the moment.