The share is meeting an important level. We suggest caution because this point could stop the bullish trend.

From a fundamental viewpoint, the company missed analysts expectations regarding the first quarter of 2014, as it published earnings 16% below estimates. No progression has been made in sales and there is no business predictability based on financial statements. The EBITDA deteriorates and anticipations in leverage are not encouraging at all. Indeed, EPS and revenues revisions have been constantly downgraded during the last twelve months.

From a technical viewpoint, the proximity of the USD 14.8 medium-term resistance limits the upside potential of the stock. The uptrend in the short term could be stopped by this level and prices are predicted to decline sharply in the coming sessions. Convergence of 20 and 50-days moving averages lure prices to encounter this key point but the presence of the upper trend narrows the trading range.

Due to the technical elements and poor quality fundamentals, investors may sell the equity close to the USD 14.8 resistance. The price target being set at USD 12.7, a stop-loss order could be placed above USD 14.8 in order to limit further risks.