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.
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