XRX breaks back above 20-day moving average
Xerox Corporation (XRX) Technical Analysis Report for Jul 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, XRX ended Thursday at 16.32 gaining $0.46 (2.9%), significantly outperforming the S&P 500 (-0.38%). Closing above Wednesday's high at 15.99, the stock confirmed its breakout through the previous session high after trading up to $0.59 above it intraday.
Daily Candlestick Chart (XRX as at Jul 30, 2020):
Thursday's trading range has been $1.38 (8.87%), that's far above the last trading month's daily average range of $0.79. 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.
Xerox managed to close back above the 20-day moving average at 16.12 for the first time since July 23rd. After spiking up to 16.58 during the day, the market found resistance at the 50-day moving average at 16.57. The last time this happened on February 4th, XRX actually gained 2.87% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
As prices are trading close to July's high at 17.61, upside momentum might accelerate should the share mark new highs for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Xerox. Out of 164 times, XRX closed lower 52.44% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 53.05% with an average market move of -0.42%.