XRX unable to break through key resistance level
Xerox Corporation (XRX) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
XRX finished Wednesday at 19.24 gaining $0.34 (1.8%) on low volume, strongly outperforming the S&P 500 (-0.46%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (XRX as at Sep 16, 2020):
Wednesday's trading range has been $0.70 (3.68%), that's slightly above the last trading month's daily average range of $0.62. Things look different on the weekly timeframe, where the market's trading range of the last week has been 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 18.58 and 19.57 where it has been caught now for the whole last trading week.
Unable to break through the key technical resistance level at 19.52 (R1), the market closed below it after spiking up to 19.57 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. The stock ran into sellers again today around 19.57 for the third trading day in a row after having found sellers at 19.51 in the prior session and at 19.53 two days ago. The last time this happened on August 3rd, XRX lost -2.06% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could accelerate should prices move below the close-by swing low at 18.77 where further sell stops might get triggered. Further buying could move prices higher should the market test August's nearby high at 19.61. As prices are trading close to September's low at 18.22, downside momentum might speed up should the share mark new lows for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous two Highs" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Xerox. Out of 133 times, XRX closed higher 57.14% 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 57.14% with an average market move of 0.75%.