On 29 April, the Italian holding (energy, media, automotive components, healthcare,..) CIR has published an EPS down 57% and an increase in sales of 1.3% for the first quarter of the year. Despite these disappointing results, the security continued its rise before to meet a bearish trend line.

From a fundamental point of view, the stock is largely overvalued with a PER 2013 of 49x. EPS estimates has been revised downward by the Thomson Reuters consensus. The debt level is high with a Debt/EBITDA ratio of 8.13x in 2012.

Graphically, the share is in a technical rebound phase which allowed it to reach a bearish trend line, around EUR 0.9. This area could trigger a sell signal for investors which may take their profit on the security, especially since the last trading sessions showed a high investors' indecision. Thus, this level would be a peak for the next sessions if not broken out in daily closing price. A comeback to the EUR 0.83 may happen in the coming days.

The technical configuration as well as fundamentals the CIR group' security let think there will be a consolidation, at least in the short term. The bearish trend line at EUR 0.9 should stop the bullish dynamic. As a consequence, to benefit from a technical correction, a short position could be opened at the current price with EUR 0.83 in line of sight. In case of a new bullish acceleration, the stop loss will be triggered above the EUR 0.9 resistance.