The technical rebound of Antofagasta should be stopped in the coming trading sessions.

The valuation of the company does not seem attractive with a EV/Revenue ratio of 2.11x for 2015. Moreover, analysts have severely downgraded their EPS estimates.

From a technical viewpoint, the security is in a bearish trend in the long and mid-term, even if prices have increased in the short term. The current technical rebound lead the stock close to its GBp 719 resistance. This technical threshold is likely to stop the bullish movement and stimulate a bearish one. Indeed, decreasing moving averages apply pressure on the stock.

The timing seems opportune to open a short position on the stock to target a return towards the GBp 650 support and a stop loss order must be placed above GBp 719.