XRX finds buyers at key support level
Xerox Corporation (XRX) Technical Analysis Report for Jul 29, 2020 | by Techniquant Editorial Team
XRX ended Wednesday at 15.86 gaining $0.65 (4.27%) on high volume, significantly outperforming the S&P 500 (1.24%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (XRX as at Jul 29, 2020):
Wednesday's trading range has been $1.16 (7.68%), that's far above the last trading month's daily average range of $0.75. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for XRX.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on July 15th, XRX gained 0.70% on the following trading day.
After trading down to 14.82 earlier during the day, the share bounced off the key technical support level at 15.05 (S1). The failure to close below the support might increase that levels significance as support going forward. Prices are trading close to the key technical resistance level at 16.02 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 16.38 where further buy stops might get triggered. With prices trading close to this year's low at 14.22, downside momentum could speed up should the stock break out to new lows for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Xerox. Out of 454 times, XRX closed higher 57.05% 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 six trading days, showing a win rate of 53.52% with an average market move of -0.02%.