Tellabs, the telecommunications company that designs and manufactures equipment for service providers, is going to have new bearish objectives in case of breakdown of the support.

From a fundamental viewpoint, the financial situation of the company is fragile. Finally, we note that analysts have recently revised downward forecasts of earnings per share, indicators often precursors of a fall in prices.

Technical analysis shows a bearish trend in the short-term : indeed, prices are very close to a turning point located at USD 3.26 which once broken could extend the downward movement. Moreover, moving averages are trending down which reduces the probability for a short-term rebound.

Once the breakdown of the USD 3.25 level, investors could take advantage of the downturn. A stop loss order is placed above the USD 3.4 because an upward pressure would invalidate this strategy.