The afternoon, the major stock indexes are soaring higher. Technology stocks are leading the rally higher with the NASDAQ Composite trading up by nearly 3.00 percent on the session. When the tech stocks rally we must always look at the important cloud computing stocks to be market movers.
Rackspace Hosting Inc.(NYSE:RAX) is a leading hosting and cloud computing company. This stock has been beaten down since early July 2011 when the stock traded as high as $46.00 a share. Recently, the stock has been able to form a series of higher lows on the daily chart. The stock will still have daily chart resistance around the $38.00 level. The next major daily chart resistance level will be around the $40.25 area. Short term day traders can watch for intra-day resistance around the $36.25 and $36.85 levels. Should the stock decline intra-day traders can watch for intra-day support around the $35.15 area.
Other leading cloud computing stocks that are trading higher include F5 Networks Inc.(NASDAQ:FFIV), Citrix Systems Inc.(NASDAQ:CTXS), and Salesforce.com Inc.(NYSE:CRM). All of these leading cloud stocks have very similar pattens on the daily charts, therefore, traders must use caution after this rally concludes.