Is Xerox Closing in to Resistance?

Published on Monday, 25 June 2012 08:32 Written by TradersHuddle Wire

New York, June 25th (TradersHuddle.com) - Shares of Xerox Corporation (NYSE:XRX) are trading very close to calculated resistance at $7.85. The stock ended the trading session at just $7.81, which is near levels that make it difficult to buy or start a position.

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 stock range is defined by its calculated support defined at $6.91 and by the resistance level at $7.85; the stock is clearly over-extended from support, making it harder for participants to establish fresh longs.

Traders don't have a clear entry point for Xerox. However, as the stock pulls back towards $6.91 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $7.85 then traders will get an opportunity to enter the stock as it moves to a higher range.