XRX finds buyers around 37.66 for the third day in a row
Xerox Corporation (XRX) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
XRX finished the week 1.75% higher at 37.82 after losing $0.39 (-1.02%) today on low volume, significantly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. The bears were in full control today, moving the market lower throughout the whole session. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (XRX as at Feb 14, 2020):
Friday's trading range has been $0.75 (1.96%), that's below the last trading month's daily average range of $0.94. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for XRX. Prices continued to consolidate within a tight trading range between 37.58 and 38.69 where it has been caught now for the last three trading days.
Even with a strong opening the stock closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on February 6th, XRX lost -1.35% on the following trading day.
Prices are trading close to the key technical support level at 37.36 (S1). Prices are trading close to the key technical resistance level at 38.46 (R1). The share found buyers again today around 37.66 for the third trading day in a row after having found demand at 37.58 in the previous session and at 37.65 two days ago.
Xerox shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying could accelerate should prices move above the close-by swing high at 38.69 where further buy stops might get triggered. Selling could speed up should prices move below the nearby swing low at 37.58 where further sell stops might get activated. 2019's high at 39.47 is within reach and we could see further upside momentum should the market manage to break out beyond. Trading close to December's high at 39.03 we might see further upside momentum if potential buy stops at the level get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Xerox. Out of 290 times, XRX closed higher 53.79% 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 55.86% with an average market move of 0.47%.