XEROX (XRX) started it's up-move in January 2013 at the breach of an important pivot at 7.5. The stock is now at 10.7, with a recent high at 11.15. Returns amount to over 40% from the entry price mentioned previously. Life-time high for the stock is around 64 which was formed way back in 1999.
A general question asked is will this up move take the stock up to it's life-time highs? That's a question better answered with smaller targets & by carefully watching the stock for important pivots over the long term. As of now the stock has taken a break from the up-move, the indication of the break came at the end of August 2013 as market on the chart. Since then we've so far seen sideways action in the stock for 3 to 4 months & more recently some volatile price action too. The original indication for this sideways zone came at the break of $9.82, now the price point has moved slightly to 9.95. This will be an important support that the stock will have to remain above in order to stabilize and continue the up-move. Further supports for the stock are at 9.64, 8.27 & 8.11. The support at 9.64 is strong for the stock & breaking this will put the future of the stock in jeopardy but that does not mean that the stock will turn bearish but it might end up being sideways to volatile for a long while. But below this the support zone at 8.27 to 8.11 is very critical & breaching this will mean that the stock will enter a bear market.
The stock is showing strong resistance at 11.15 which is also the recent high for the stock. Resistance above this price level will be seen at 12.1 & 20.35.
So far the stock is taking a break from it's recent up-move & has turned a little volatile recently but it does not seem to be weakening yet. Forming a strong base here might result in a continued up trend in the stock in the near future. 9.64 will be a critical support level to watch for in the stock at present.
Infosys 4 months into the new up-move
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