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Possible Bullish Inside Day Candle Pattern Detected for Rackspace Hosting (NYSE:RAX)

By Shiri Gupta

SmarTrend's candlestick scanner has spotted a possible bullish inside day candle pattern in Rackspace Hosting (NYSE:RAX) based on the price action in the company's shares. Today's price range of $21.05 and $21.32 is within yesterday's high and low of the day. This trading action often signifies indecision by bulls and bears to drive prices higher or lower and often implies a possible change in trend. Traders and investors interested in shares of Rackspace Hosting may want to consider an appropriate entry level in the event a reversal to the upside transpires. It is important to look for confirmation.

Rackspace Hosting has overhead space with shares priced $21.24, or 46.0% below the average consensus analyst price target of $39.31. The stock should run into initial resistance at its 50-day moving average (MA) of $22.33 and subsequent resistance at its 200-day MA of $25.40.

In the past 52 weeks, Rackspace Hosting share prices have been bracketed by a low of $15.05 and a high of $54.57 and are now at $21.24, 41% above that low price. The 200-day and 50-day moving averages have moved 1.1% lower and 0.98% higher over the past week, respectively.

Rackspace Hosting, Inc. delivers websites, web-based IT systems, and provides related services.

SmarTrend recommended that its subscribers protect gains by selling shares of Rackspace Hosting on May 6th, 2016 by issuing a Downtrend alert when the shares were trading at $21.92. Since that call, shares of Rackspace Hosting have fallen 5.8%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: bullish inside day candle Rackspace Hosting

Ticker(s): RAX