XRX dominated by bears dragging the market lower throughout the day
Xerox Corporation (XRX) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
XRX finished the week 0.39% higher at 28.43 after tanking $0.71 (-2.44%) today, strongly underperforming the S&P 500 (-0.92%). This is the biggest single-day loss in over four weeks. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 28.84, the stock confirmed its breakout through the prior session low after trading up to $0.50 below it intraday.
Daily Candlestick Chart (XRX as at Nov 09, 2018):
Friday's trading range has been $0.88 (3.03%), that's slightly above the last trading month's daily average range of $0.75. Things look different on the weekly timeframe, where the market's trading range of the last week has been way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for XRX.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 28.03 (S1). Prices broke below the key technical support level at 28.77 (now R1), which is likely to act as resistance going forward. The share ran into sellers again today around 29.22 for the third trading day in a row after having found sellers at 29.18 in the previous session and at 29.16 two days ago. The last time this happened on October 23rd, XRX actually gained 2.70% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior two Highs" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Xerox. Out of 140 times, XRX closed higher 61.43% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 59.29% with an average market move of 1.16%.