The multinational communications company should reinforce the downturn in the ensuing sessions.

Sales of the Louisiana based company felt significantly during the last year -this after an incredible improvement made in 2012- implying by this time negative earnings and a subsequent weakened financial situation. Although, the company is in the middle of a recovery phase, it is not necessarily a synonym of wealth and stability. Soaring P/E ratio keeps shares overvalued, preventing investors for future shares acquisitions and foremost motivating a seller outlook on the stock. Otherwise, EPS have been revised downwards during the last twelve months for 2014 and 2015 forecasts (-12% and -20% respectively).

Technical patterns show an equity that in spite of its continuous bearish trend successfully outlined an upturn and attained higher levels. But this lush is not present anymore. Having tested the USD 33.9 resistance the security should now turn in the direction to the USD 31.9 support line, helped by 50 and 100-weeks moving averages. In fact, the stock is currently in an overbought situation and prices can’t bear with this bullish pressure anymore; as observed in similar scenarios a correction phase is anticipated.

For reasons above exposed, the timing seems suitable for short position taking at current prices. The bearish trend should allow the security to reach the USD 31.9 support which represents our main target even if lower levels could be attained. Investors could place a stop-loss order at USD 34.7.