Perfect Gap Close for RackSpace

By -

I’ve been holding off on shorting RackSpace (symbol RAX), and I’m glad I did. They announced earnings after yesterday’s close, and the stock has shot up to perfectly fill the gap from May 8th. I’ve gone ahead and shorted the stock today, using a stop-loss of 49.52. Here’s a close-up of the gap close:


And here you can see the big picture, including the important break of the ascending channel: