Xerox Setting for a Break?

Published on Thursday, 02 September 2010 06:28 Written by Danny Miller

New York, September 2nd (TradersHuddle.com) - Shares of Xerox Corporation (NYSE:XRX) closed the trading session at $8.82 near its 50 day and 200 day moving averages currently set at $8.87 and $9.15 respectively. Xerox's price action is below these important levels, which makes the stock difficult to buy, as there will certainly be resistance as it approaches these important moving averages.

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.

Latest price action range, defined by a peaks and troughs algorithm placed calculated support at $8.32 and calculated resistance at $9.34. These levels should be watched by traders, as they provide insight into the latest price dynamics in Xerox shares.

Traders should evaluate their options if they want to establish a position on Xerox given the heavy resistance expected near the 50 and 200 day moving averages. A trade might be evident as the stock manages to break these moving averages, however until the break materializes buying the stock is nothing different than flipping a coin. Other levels that traders will closely evaluate are the ones defined by the peak and troughs algorithm that provides great price level reference points.