Is Xerox Breaking Out?

Published on Friday, 25 January 2013 06:36 Written by TradersHuddle Wire

New York, January 25th (TradersHuddle.com) - Shares of Xerox Corporation (NYSE:XRX) closed the session at $7.75 just above calculated resistance at $7.66. The stock moved to what appears to be a higher range, spurring attention from momentum buyers.

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.

The stock was trading in a well defined range with support at $6.62 and resistance at $7.66. Given that this range was broken, traders will be closely monitoring Xerox's price action to gather clues on the future direction.

From a technical perspective, it can be expected that previous resistance becomes support, as the new range gets defined. However, given that Xerox is still near the broken resistance level, traders will be focusing on the $7.66 level to see if the stock holds the breakout without rolling over.