The Canadian oil and gas producer with main operations in Colombia could see its shares plunge after an unsuccessful attempt to break the bearish trend line.

Even if a higher sales volume is anticipated for the ongoing fiscal year, as well as an improvement in its financial situation, it’s overall trading rating still reflecting a weakened situation as disappointing latest earnings releases attests (earnings revealed a 15% fall against expectations). Although analysts stay confident on the company’s ability to make better revenues, revisions have been strongly mixed as displayed by the strong variations. Moreover, EPS have been frequently revised downwards falling from CAD 3.10 per share twelve months ago to an insufficient return of CAD 1.96 per share nowadays.

Technically speaking, the present pattern claims for a downturn as prices failed on its attempt to break the trend line up. In fact, the last candlestick (a doji) indicates indecision among market makers with the existing trend. Thus, we anticipate a return of prices toward the CAD 19 pivot point as a first key threshold that once broke could argues for even lower quotes and could in a second stage lead shares close to the CAD 17.5 support.

Active investors could take a short position at current prices, looking for a first target near the CAD 19. Otherwise, the stop loss is placed above the trend line at CAD 22.3.