Cloud Stocks And Their Near Term Ceilings
Many of the cloud computing stocks are trading higher this morning. Yesterday's market rally helped to lift these popular technology stocks off of their recent lows. Prior to the May 2011 top in the stock market it was the cloud computing stocks that were leading the stocks markets higher. These stocks could be staging near term bounces, however, there will be good resistance levels coming into play very soon.
F5 Networks Inc (NASDAQ:FFIV) is a leading computer networking stock that showed very good relative strength yesterday before the explosive late afternoon stock market rally. Today FFIV stock is trading higher by $3.13 to $80.75 a share. This stock will come into very strong daily chart resistance around the $85.00 and $89.00 levels. Traders should watch for intra-day resistance around the $83.00 area.
Rackspace Hosting Inc (NYSE:RAX) is a leading hosting company operating with the cloud computing technology. This stock rebounded yesterday and is trading higher this morning by 0.51 cents to $33.63 a share. This stock will have very good intra-day resistance around the $34.00 area. Traders should watch for important daily chart resistance around the $36.00 and $38.00 areas should the markets rally over the next couple of weeks.
Other leading cloud computing stocks that are trading higher include Riverbed Technology Inc (NASDAQ:RVBD), Aruba Networks Inc (NASDAQ:ARUN), and VMWare Inc (NYSE:VMW). All of these leading stocks should have some further upside potential, however, FFIV is the leading cloud stock at this time. When that stock begins to pullback the other cloud stocks are likely to follow.