XRX pushes through Thursday's high
Xerox Corporation (XRX) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, XRX finished the month 8.89% higher at 16.65 after gaining $0.33 (2.02%) today on high volume, notably outperforming the S&P 500 (0.77%). Trading up to $0.55 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Monday, XRX actually lost -3.86% on the following trading day. Closing above Thursday's high at 16.58, the stock confirmed its breakout through the previous session high after trading up to $0.09 above it intraday.
Daily Candlestick Chart (XRX as at Jul 31, 2020):
Friday's trading range has been $1.11 (6.89%), that's far above the last trading month's daily average range of $0.81. 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.
The market managed to close back above the 50-day moving average at 16.56 for the first time since July 23rd. Prices are trading close to the key technical resistance level at 16.95 (R1). After having been unable to move above 16.58 in the prior session, Xerox ran into sellers again around the same price level today, failing to move higher than 16.67.
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 speed up should XRX mark new highs for the month.
Among the nine 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 453 times, XRX closed higher 57.17% 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 four trading days, showing a win rate of 54.97% with an average market move of 0.02%.