The trend is clearly bearish on Peabody Energy Corporation and it could soon cross its USD 16.25 support, corresponding to the lowest since 2008.
From a fundamental viewpoint, the group is in a bad financial situation. The latter is worrying with an important debt level. Leverage is at 4.53x for the current year. Moreover with a PER of 97.1x, the group appears overvalued compared to its business activity. Otherwise, analysts have recently downgraded their forecasts for earnings per share and revenue.
Technically, the share is in a downward trend. The moving averages are decreasing and are still above prices, thereby stopping any rebounds. The security is going to cross the USD 16.25 long term support, toward USD 14.9 (50% of the pivot point objective).
Therefore, we could sell the stock below the USD 16.25 support and aim USD 14.9. A stop loss will be placed above effective entry point, threshold that would invalidate the bearish strategy.