Last week, after breaking the short-term downside resistance line drawn from the high of March 15th, the Xerox Holding Corp stock (NYSE: XRX) pushed further north and is now trading above a short-term tentative upside support line taken from the low of June 1st. As long as the share price stays above that upside line, we will continue aiming higher.
Even if the stock corrects a bit lower, as long as it continues to trade above the aforementioned upside line, we will stay positive, at least for now. XRX could make its way to the highest point of April, at 25.58, where the price could stall a bit. However, if there is still enough buying interest even at that level, the stock could continue pushing higher, potentially aiming for the 26.16 obstacle, or even the 26.94 area, marked by the highest point of March.
The RSI, although it is currently on the flat side, remains above 50. The MACD is slightly more positive, as it continues to point higher, while resting above zero and its trigger line. The two oscillators seem to be in support of the upside scenario overall, as the indicators show positive price momentum.
Alternatively, if the stock falls all the way back below the 23.23 zone, marked by the current lowest point of June, this move would also place the share price below the 200-day EMA, possibly keeping new buyers away from entering for a while. XRX might drift to the 22.86 obstacle, marked by the lowest point of May, a break of which would confirm a forthcoming lower low, possibly opening the door for a move to the 22.13 zone. That zone marks the low of February 4th. If there are still not enough new buyers around that area, the stock may slide to the 21.56 level, marked by the inside swing high of January 28th.
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