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TheStreet Open House

3 Tech Stocks Spiking on Big Volume

Stocks in this article: RAXOPENADVS

Rackspace

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Rackspace ( RAX) is a provider of cloud computing services, managing Web-based IT systems for small and medium-sized businesses as well as large enterprises. This stock closed up 8.2% to $47.85 in Friday's trading session.

Friday's Volume: 6.79 million
Three-Month Average Volume: 2.36 million
Volume % Change: 205%

Shares of RAX ripped sharply higher on Friday after the company said its second-quarter net income fell 11% as expenses rose, though the results beat analysts' expectations.

>>2 Tech Stocks Triggering Big Breakouts

From a technical perspective, RAX gapped up here and broke out above some near-term overhead resistance at $47.26 with heavy upside volume. This stock has been uptrending strong for the last two months, with shares moving higher from its low of $33.91 to its intraday high on Friday of $49.50. During that uptrend, shares of RAX have been consistently making higher lows and higher highs, which is bullish technical price action.

Traders should now look for long-biased trades in RAX as long as it's trending above Friday's low of $46.88 and then once it sustains a move or close above Friday's high of $49.50 with volume that hits near or above 2.36 million shares. If we get that move soon, then RAX will set up to re-fill some of its gap down level from May that started at $52.45. If that gap gets filled with volume, then RAX could easily tag $55 to $57.

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