XRX finds buyers again around 15.71
Xerox Corporation (XRX) Technical Analysis Report for Aug 05, 2020 | by Techniquant Editorial Team
XRX ended Wednesday at 16.12 gaining $0.44 (2.81%), notably outperforming the S&P 500 (0.64%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (XRX as at Aug 05, 2020):
Wednesday's trading range has been $0.53 (3.37%), that's far below the last trading month's daily average range of $0.82. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for XRX. Prices continued to consolidate within a tight trading range between 15.60 and 16.60 where it has been caught now for the last three trading days.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on May 8th, XRX actually lost -3.03% on the following trading day.
Buyers managed to take out the key technical resistance level at 16.02 (now S1), which is likely to act as support going forward. After having been unable to move lower than 15.60 in the previous session, the stock found buyers again around the same price level today at 15.71.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 16.68 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 15.60 where further sell stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Its common bullish interpretation has been confirmed for Xerox. Out of 542 times, XRX closed higher 51.11% 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 54.06% with an average market move of 0.49%.