SINA Corp, online media company for Chinese communities is coming near to the resistance and could be driven in a correction phase.

From a fundamental viewpoint, firstly, we note the high valuation of the company. PER for the current year is at 231.83x and expected at 53.7x for next year. With a valuation ratio of 6.07x, the group appears overvalued compared to its business activity.

Graphically, the stock went through a period of rebound in recent sessions towards the USD 57 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 50.9 support area which will be a bearish objective.

The technical configuration and fundamentals lead us to predict a consolidation phase, at least in the short term. The USD 57.1 should play its full role to stop the upward trend initiated in the short term. Therefore, to take advantage of this technical correction, a short position may be opened in the current area to target USD 50.9. In case of further acceleration, the stop loss will be triggered above the USD 58.