The manufacturer of construction materials, most notably drywall and joint compound, is showing signs of weaknesses after a technical rebound towards the USD 20.8 resistance.

Regarding the financial situation, leverage is at 6.42x. Even if previsions of earnings per share are rising, debts are estimated at 1809.34 M USD for the current year.

Technically, the security could run out of steam close to the USD 20.8 resistance. Indeed, the stock is moving in an upward trend in the short term but it could know a halt. In this context, the downward movement could improve and it should expect a return to USD 17.6. Indicators that show an overbought situation confirm this scenario.

The technical configuration and fundamentals lead us to predict a consolidation phase, at least in the short term. The USD 20.8 should play its full role and 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 17.6. In case of further acceleration, the stop loss will be triggered above the USD 20.8.