NEW BULLISH Plays
Rackspace Hosting - RAX - close: 44.96 change: +0.73
Stop Loss: 43.35
Current Gain/Loss: unopened
Entry on July -- at $--.--
Listed on July 24, 2013
Time Frame: exit PRIOR to earnings on Aug. 8th
Average Daily Volume = 1.9 million
New Positions: Yes, see below
Why We Like It:
When it comes to "the cloud" and hosting services RAX has a lot of competition. Yet the stock has also been rumored to be a takeover candidate for months. After a terrifying plunge from $80 to $35 the stock has produced a pretty solid bounce. Shares just spent the last few days consolidating sideways below technical resistance at its 100-dma. Today's display of relative strength and bullish breakout looks like an entry point.
Today's high was $45.28.
Tonight we are suggesting a trigger to open bullish positions at $45.35. If triggered our target is $49.00. I am suggesting we keep our position size small to limit our risk. If the broader market starts to correct lower it could be tough for RAX to build on its gains.
Trigger @ 45.35 *small positions*
Suggested Position: buy RAX stock @ (trigger)