Transcanada Corporation security is likely to drop in the upcoming trading sessions, due to its fundamental and technical situation.

The company has recently reported its third quarter results, which were lower than expected: Sales (-5.5%), EBITDA (-45%), operating profit (-49%). Moreover, the Senate defeated the legislation that would have approved the Keystone XL pipeline this week, after 6 years of delay.

Technically, prices have been boosted on contact with the USD 50.25 midterm support. However the technical rebound seems to have run out of steam in the last trading sessions close to the 57.05 short term resistance. This threshold is blocking the bullish movement currently, and may push back prices.

According to those fundamental and technical elements, it seems opportune to open a short position on the stock in the current area, to target a return under the USD 54.35 support. The target will be the USD 52.8 level. However, a stop loss should be placed over the USD 57.05 resistance, because its crossing will invalidate this strategy.