The upward trend of Admiral Group's shares seems to have run out of steam, the bearish trend could recover.

The company is still displaying poor fundamentals. EPS are anticipated at lower levels in 2014 and 2015 than those registered in fiscal 2013. On the other hand, analysts covering the stock have an average target price of GBp 1280, which corresponds to 11% lower than the current price.

From a technical viewpoint, the proximity of the GBp 1454/1481 mid-term resistance area limits the upside potential on the stock. The uptrend in the short term could be stopped by this level and prices could decrease sharply in the coming sessions. Technical indicators also show an overbought situation that reinforces this bearish scenario. Thus, there is a higher downside potential than upside.

Therefore, the most offensive investor can benefit from the current situation by opening a short position. The objective will be fixed near to the GBp 1346 support. The stop loss will be set above GBp 1481.