After a sharply fall, Cubist Pharmaceuticals had a bullish trend that is slowing down.

From a fundamental viewpoint, analysts revised downward EPS estimates for this year, from USD 2.28 in January 2012 to USD 2.11 today. On this basis, the security is currently trading respectively 26.29x and 20.87x its sales. This situation does not argue for an investment.

A new decline in prices is likely to happen because of the technical configuration. Prices are under the 20-day moving average and the USD 42.6 short term resistance. This elements could lead the security towards the USD 40.8 short term support.

Taking into account all these elements, it seems appropriate to take a short position in Cubist Pharmaceuticals with a target price in the USD 40.8 area. A stop loss will be fixed above the USD 42.6 resistance.