Globe Specialty Metals, producer and seller of silicon metal and silicon-based alloys, should undergo some profit-taking after the rebound in recent sessions.

From a fundamental viewpoint, firstly, we note the high valuation of the company. PER for the current year is at 18.04x and expected at 15.69x for next year. With a valuation ratio of 1.45x, the group appears overvalued compared to its business activity. Regarding the financial situation, leverage is at 0.7x. Debts are estimated at 98.51 M USD for the current year.

Graphically, the stock went through a period of rebound in recent sessions towards the USD 15.18 medium-term resistance. The share should consolidate near this area. It could act as a stopping point of the upward movement. This scenario suggests a return to the USD 13.41 support area which will be a bearish objective. Moreover, there is a gap to fill.

The upside seems limited as shown by fundamentals and technical configuration. In contact with the USD 15.2 resistance, a movement of consolidation could return the stock towards the USD 13.4 mid-term support. As a result, the most aggressive investors could take a short position near USD 15.2 but they need to set a stop loss above this resistance because the crossing of this level would invalidate our scenario