Xerox Closing in to Resistance

Published on Wednesday, 25 January 2012 07:32 Written by Christopher Lynn

New York, January 25th (TradersHuddle.com) - Shares of Xerox Corporation (NYSE:XRX) are trading very close to calculated resistance at $8.84 with the current price action closing at just $8.67 placing the stock near levels that make it difficult to buy.

Xerox Corporation (NYSE:XRX) develops, manufactures, markets, and services a range of document imaging and processing products and services for use in offices around the world.

Xerox's current stock range is defined by current calculated support defined at $7.87 and by the resistance level at $8.84, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Xerox, as the stock is well above support, however, as the stock pulls back towards $7.87 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $8.84 then traders will get an opportunity to enter Xerox stock by establishing a position as the stock moves to a higher range.