Rackspace Hosting Inc (RAX +$0.08 or +0.30% to $26.73) edged higher today on light volume. Weakness after a gap down on Monday has it slumping toward prior highs near $26 that define initial chart support above its 50-day moving average (DMA) line and an upward trendline connecting its July-October lows. This high-ranked Internet - Network Solutions firm is -8.9% from last week's all-time highs. Since it was last analyzed in this FSU section on 9/21/10 with an annotated graph under the headline "No Overhead Supply Left To Act As Resistance" it made quick progress, then found support near its old chart highs while going through a choppy consolidation. A subsequent rally to new highs was marked by heavy volume again, and now the volume totals have been cooling while it is consolidating, but it is extended from a proper base. Additionally, the M criteria is arguing against new buying efforts again based on recently noted deterioration in the major average and a sudden evaporation of leadership (new highs) since November 4th when new highs totals on the exchanges recently peaked.

No overhead supply remains to hinder its progress. This high-ranked Internet-Networking Solutions firm has earned very high ranks, and 3 of the past 4 quarterly earnings comparisons showed better than +25% increases. Its annual earnings history (A criteria) since trading began in 2008 has been good.