The copper transformer with main operations in the European Union could face difficulties to exceed the EUR 42.3 resistance.

Company’s sales are awaited at lower levels than those registered in prior year, meaning a decrease of almost 3%. In fact, revisions made by analysts polled by Thomson-Reuters have been continually downgraded both in terms of Sales estimates and EPS. Sales are now anticipated at €11,985 million from €14,353 million twelve months ago, while EPS dropped near €2.8 per share from €5.15 in April 2013.

In spite of efforts made to fulfill expectations, the equity still underperforming and the present bullish trend could suffers a bearish reverse in the short term. Prices will be approaching a strengthened resistance level that should return them toward the EUR 36 support, forming this way a double top pattern. In addition, weekly moving averages orientation advocates a continuous decline.

Considering fundamental and technical analysis, investors could take a short position once prices are around the EUR 42.3 resistance seeking for the EUR 36 target (with a first goal at EUR 38.4). The stop-loss order would be placed above the entry point at EUR 44.3.