The share of the network provider for electronic restaurant reservations struggles near the USD 84.2 resistance.

In fact, even if sales are intended to increase, its poor performance in terms of margins would argue for earnings decrease of almost 4% in 2014. The company is clearly overvalued with a P/E ratio of 64.1x. Moreover, EPS revisions reveal lower expectations on the ability of OpenTable to increase sales and generate profits.

The equity has been struggling since several sessions for breaking through the USD 84.2 resistance without successful. Hence, prices are expected to plunge in ensuing sessions, reaching in a first step the USD 78.8 short term resistance which also corresponds to 50 and 100-day moving averages crossing point. There are strong possibilities for a further acceleration of the bearish run toward the USD 71.8 pivot point.

Investors are encouraged to take short positions on OpenTable looking for USD 78.8 as main target and placing the stop-loss order over the midterm resistance at USD 86.7.