Sears Holdings remains in a downtrend and the fundamental data shows deep difficulties.

The rebound recorded in the last trading sessions is not justified by Sears Holdings' fundamentals which are still fragile. Indeed, the company is highly valued taking into account losses registered in the previous years and also expected in the coming fiscal years. Thus, the company suffers from bad perspectives and also gradual downward revisions of EPS during the past months.

From a technical viewpoint, the security is in a bearish trend in the long and mid-term, even if prices have increased in the short term. The current technical rebound has allowed to reach its USD 49 resistance which represent a pertinent short level. Prices could now drop toward the 20-day moving average (around USD 42.5) and then the USD 41.2 support.

Thanks to financial information above-mentioned, investors can take a short position at the current price on Sears Holdings to target USD 42.7 and then USD 41.2. This strategy would be invalidated if the security crosses the USD 49.04 resistance.