The technical configuration suggests a correction in the short term.

Some fundamental elements argue in favor of short-selling. The company lost 110 million pounds in 2012 and analysts from the Thomson Reuters consensus have recently revised downward their EPS estimates. Further, the firm is very indebted with a financial leverage of 5.65x in 2012.

Graphically, the stock went through a period of rebound in recent sessions towards the GBp 154.7 medium-term resistance. The share should consolidate near this area. It could act as a stopping point of the upward movement. This scenario suggests a return to the GBp 143.8 support area which will be a bearish objective.

The technical configuration and fundamentals lead us to predict a consolidation phase, at least in the short term. The GBp 154.7 should play its full role and stop the upward trend initiated in the short term. Therefore, to take advantage of this technical correction, a short position may be opened in the current area to target GBp 143.8. In case of further acceleration, the stop loss will be triggered above the GBp 154.7.