Coming back to the resistance at EUR 2.8 may stimulate price's relapse toward the support.

Fundamentals on telecommunications services provider, KPN KON, remain extremely volatile. The company is worth 39.9 times estimated earnings which represents a huge valuation level that isn't justified regarding the whole picture. The company's market capitalization discounted of liabilities represents almost 2.28 times its sales for becoming part of worst odds in the telecommunications sector worldwide. Analysts revised downwards EPS and Sales of the group previewing massive losses in 2014 and 2015. Estimates felt from €0.19 per share to €0.07 per share for the ongoing fiscal period.

After a bullish period started back on mid-2013, the stock recently approached the EUR 2.8 resistance, an important barrier for prices. The stock may consolidate on this area and the return close to the EUR 2.5 pivot point and matching with the bottom ascending line. If equity plunges under the EUR 2.8 resistance the bearish scenario will be corroborated, in the contrary, the breakout over this threshold will give an upward signal.

Most active investors could open short positions on KPN KON close to EUR 2.8. The target being set at EUR 2.5, means a potential gain of 7%. A stop loss could be placed at EUR 2.83, level at which the bearish strategy is unworthy.