Helix Energy Solutions Group should undergo some profit-taking after the rebound in recent sessions.

From a fundamental viewpoint, the oil and gas services company may suffer from its sector troubles with the recent downward trend of oil prices. The net margin is expected to decrease for the next year from 18.6% to 17.5%, while valuation levels should increase (P/E ratio of 13.4x in 2014 and 13.9x in 2015).

Technically, the bearish trend dominates in the medium and the short term. Indicators highlighted an overbought situation in recent sessions. It shows a limited potential for a possible appreciation near the midterm resistance at USD 27.5.

The upside seems limited as shown by fundamentals and technical configuration. In contact with the USD 27.5 resistance, a movement of consolidation could return the stock towards the USD 24 mid-term support. As a result, most aggressive investors could take a short position near USD 27.5, targeting USD 24. However, it is advised to set a stop loss above this resistance because the crossing of this level would invalidate our scenario.