Segro is Europe's leading owner-manager and developer of industrial property, with a portfolio in London and the South East of England and major conurbations in Germany, France and Poland.The breakdown of the GBp 223.2 support would open new bearish objectives for the stock.

From a fundamental viewpoint, the financial situation of the company is fragile. Finally, we note that analysts have recently revised downward forecasts of earnings per share, indicators often precursors of a fall in prices. The company is also overvalued with a 83.56x PER and a 12.8x EV/Sales ratios estimated for this year.

Technically, the share is close to a major technical support at GBp 223.2. The breakdown of this strategic point would generate a sell signal for the most offensive investors. Then stock prices could go toward new support areas at levels much lower. The moving averages could put pressure on prices and lead them to a sustainable downward trend.

Therefore, investors can take a short position after the breakdown of the support that should lead to a new phase of decline. The price target is set at GBp 209.4. A stop loss order will be placed above the GBp 228 area (20-day moving average), threshold that would invalidate the strategy.