Cloud Stocks Reaching A Short Term Ceiling
All of the cloud computing stocks are trading higher again this morning. Earlier today, Oracle Corp (NASDAQ:ORCL) purchased Taleo Corp (NASDAQ:TLEO) for $1.9 billion. This deal is certainly helping many of the leading cloud computing stocks to trade higher today.
Leading cloud stocks such as Rackspace Hosting Inc (NYSE:RAX), Citrix Systems Inc (NASDAQ:CTXS), and Aruba Networks Inc (NASDAQ:ARUN) are all approaching daily chart resistance levels. All of these stocks remain very strong on the charts by trading above the major daily chart moving averages. This tells technical traders that a pullback or some consolidation is likely to occur soon before these stocks can trade higher. Short term traders can watch for intra-day support on RAX around the $48.95, and $48.00 levels.