Kailuan Energy Chemical Co., Ltd. operates in the coal mining and coal washing and processing industry.

From a fundamental viewpoint, the group is in a bad financial situation. The financial situation of the company is worrying with an important debt level. Leverage is at 1.27x for the current year. Analysts have recently downgraded their forecasts for earnings per share. This indicator is often a precursor of a declining profitability and a worsening climate of investor confidence.

Graphically, we can see that the stock is in a bearish trend with decreasing moving averages, which serve as slant resistance. The security is moving towards CNY 9.30 in daily data, the next support area. Taking into account fundamental and technical elements, investors can initiate a short position in with a price target at CNY 9.30, as first target. A return towards CNY 10.1, the short-term resistance area, will invalidate the bearish strategy, which justifies a stop loss.