Morgan Advanced Materials reaches a level of strong resistance. This level could counteract the upward trend in the short term.

From a fundamental viewpoint, analysts have revised downward their EPS expectations for 2014 and 2015. Moreover, sales are expected to decrease for 2014 and group's margins seems to be volatile. All these elements could lead to some profit taking in the sort term.

Graphically, the stock went through a period of rebound in recent sessions towards the GBp 316.6 short term pivot point. 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 GBp 298 support area which will be a bearish objective.

The upside seems limited as shown by fundamental and technical configuration. In contact with the GBp 316 pivot point, a movement of consolidation could return the stock towards the GBp 298 mid-term support. As a result, the most aggressive investors could take a short position near GBp 316 but they need to set a stop loss above this resistance because the crossing of this level would invalidate our scenario.