After a rebound without fundamental improvements, the security might have a new bearish trend toward the GBp 204 support area.

From a fundamental viewpoint, the group has not sufficient quality to hope for a continuation of its bullish trend. Indeed, Surperformance rating largely punishes Eurasian Natural Resources because of constant downward revision of Earnings Per Share estimated by analysts from the Thomson Reuters consensus.
The deterioration of the financial situation and the increasing leverage for the two next fiscal year emphasize risks. "Net Debt/EBITDA" ratio at 2.72x should worsen next year at 3.04x.

From a technical viewpoint, the trend is clearly bearish in the mid and long-term. A powerful technical rebound occurred on the GBp 213 short term support. However, a major bearish wedge encloses prices downward for a few months and the current proximity to the upper limit of the latter is an opportunity to open a short position.

Therefore, fragile fundamentals and technical pattern let see a downside potential. Investors can take a short position on this level and aim a return in the GBp 204 support area. A stop loss will be fixed above the GBp 237 resistance because a breakout of this threshold would invalidate this trading strategy.