After a rebound without fundamental improvements, the security might have a new bearish trend towards the CAD 13.6 support area.

Compared to its fundamentals and its peers, the company seems overvalued. It has a 3.95x EV/Sales ratio and the security is currently trading 37.35 times its profits.

Graphically, the security is trading in a bearish trend. In the short-term, the stock has rebounded on the CAD 12.5 support area toward its CAD 14.8 mid-term resistance which is corresponding to the 100-day moving average. This rebound seems technical and is not likely to continue. Indeed, moving averages in the long-term are still in a downtrend and that argue for a continuation of the decrease in prices.

Investors can anticipate a return toward the CAD 13.5 support area in the coming trading sessions. They can take a short position in Bonavista Energy. The target price is set on the short term support at CAD 13.6. A stop loss order could be placed above the CAD 14.8 resistance area.