BHP Billiton is experiencing a downward trend that could push it toward GBp 580.9, corresponding to a mid-term support.

The company is fragile. Financially, the group is in a difficult situation with a high leverage estimated at 1.12 for the current year. Forecasts downgraded by analysts regarding earnings per share reflect the lack of visibility in the short term.

Technically, the share is in a downward trend. The moving averages are decreasing and are still above prices, thereby stopping any rebounds. The security is going toward the GBp 580.9 support, a level that will represent the first target.

Taking into account fundamental and technical elements, investors can initiate a short trade with a price target at GBp 580.9. The breakout of the 20-day moving average will invalidate the bearish strategy, which justifies a stop loss.