Xerox a Sell?

Xerox Corporation ($XRX) has been trending steadily lower since December, dropping over 20% in the last seven months...but more selling pressure could be seen ahead. Here's why..

Lower Value Relationship

The daily chart shows $XRX has formed a bearish two-month Lower Value relationship, which occurs when the current month's value area is completely lower than the prior month's value area.

This relationship usually indicates that the market is finding value at lower and lower price levels, thus revealing a bearish trend.

During this type of bearish phase, every pull-back should be seen as a selling opportunity - so "sell the rips."

Xerox has pulled back after reaching fresh lows and is currently showing initial signs of weakness at the monthly Value Area Low (VAL) at around $10.03. To boot, a bearish wick has also formed at this level, thus indicating initial selling pressure....


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