The steel producer and the largest provider for elevators manufacturers is about to enter into a bearish trend as it tests a strengthened resistance.

Regardless of the expansion of its range of services, the company remains in a delicate financial situation as it still recovers from last year collapse. Analyst’s consensus is mostly seller on the equity as they anticipate an underperformance for the current fiscal year. Beyond bad figures, EPS on ThyssenKrupp has been downwards revised during the twelve last months. By April 2013 analysts reckoned €1.46 per share while nowadays only €0.34 could be gained according to their estimates. The same tendency is observed for next year forecast, so no positive changes are foresee.

Graphically, prices are close to the EUR 20.4 resistance that already tested in mid February, proved to be a significant obstacle and should now confirm its role. Indeed, this resistance comes with an upper line of the rising wedge that could help to invalidate the present bullish trend and convert it on a bearish one. This depression would allow the security to join the EUR 18.9 support.

Considering fundamental and technical analysis, a short position could be considered close to current prices (EUR 20). The target price being fixed at EUR 18.9, the stop-loss order would be placed above the EUR 20.9.