Qihoo 360 Technology Co Ltd, the Chinese software company known for its antivirus software and web browser, is coming near to the resistance and could be driven in a correction phase.

From a fundamental viewpoint, firstly, we note the high valuation of the company. PER for the current year is at 80.29x and expected at 40.22x for next year. With a valuation ratio of 12.94x, the group appears overvalued compared to its business activity.

Graphically, the stock went through a period of rebound in recent sessions towards the USD 26 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 USD 20.4 support area which will be a bearish objective.
Therefore, the most offensive investors can benefit from the technical configuration to take a short position. The objective will be fixed near to the USD 20.4 support. Only the breakdown of this level would open up new bearish targets toward USD 17.1. The stop loss will be set above USD 26.