Is Xerox Oversold?

New York, July 26th (TradersHuddle.com) - Shares of Xerox Corporation (NYSE:XRX) closed the session at $6.38 well below calculated support at $7.11. Price action placed the stock in oversold territory as investors and money managers moved out of their positions.

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 was trading in a well defined range with support at $7.11 and resistance at $7.97, prior to its decline. When the stock broke calculated support, it sparked the current down draft, which has shown how traders move out their positions in the stock.

From a technical perspective, the Xerox stock is in severe pain, as the harsh sell-off could place a heavy burden on buyers, who as they look to get their money back, might generate a price dynamic where buyers will become sellers as the bounce materializes. It can be expected that previous support will become resistance, as a new range gets defined. The maximum move for the stock should be calculated to return to previous support at $7.11. Traders wanting to play an oversold bounce in Xerox, by establishing a long position, would need to wait for evidence of buying at a specified area.

TradersHuddle Search

Stock Search:


Site Search:

Loading

Technical Scans

Recent Trading Ideas

Latest Partner Headlines

Stock Market

Loading
Chart
o Dow Jones 16,928.76 ▼31.81 (-0.19%)
o S&P 500 1,973.70 ▼4.64 (-0.23%)
o NASDAQ 4,431.15 ▼18.42 (-0.41%)
INDEXDJX:.DJI

Dow Jones

Company ID [INDEXDJX:.DJI] Last trade:16,928.76 Trade time:12:22PM EDT Value change:▼31.81 (-0.19%)
INDEXSP:.INX

S&P 500

Company ID [INDEXSP:.INX] Last trade:1,973.70 Trade time:12:22PM EDT Value change:▼4.64 (-0.23%)
INDEXNASDAQ:.IXIC

NASDAQ

Company ID [INDEXNASDAQ:.IXIC] Last trade:4,431.15 Trade time:12:22PM EDT Value change:▼18.42 (-0.41%)

In The Wires

Copyright © 2013 TradersHuddle.com. All Rights Reserved.