Amdocs Limited (DOX) is a provider of software and services for communications, pay television (TV), entertainment and media industries. The stock recently made a new all time high on March 16th, 2021 at $82.38 a share. Since that top, the stock has been declining sharply. Today, the stock is trading lower by $5.59 to $73.75 a share. The shares are now trading below the important 50-day moving average. This is usually viewed as a sign of weakness when the 50-day moving average is breached so easily. Traders should expect further weakness in the near term.
The next major support level that will be in play for Amdocs Limited (DOX) will be around the $65.00 area. This is where the 200-day moving average is located. It is also where the 50, and 100-weekly moving average is also sitting, so this becomes an even stronger support level with all of these factors. In addition to the moving averages, there is a major retrace level around the $65.00 level. Generally, when you have so many solid supporting factors in play this will make a solid long side trade.
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