The share is reaching a strong resistance and could begin a bearish trend.

From a fundamental viewpoint, firstly, we note the high valuation of the company. P/E ratio for the current year is at 25.59x and expected at 26.92x for next year. We also note a low visibility on the activity with an expected EPS for 2014 which as been divided by more than 2 during the past 12 months.

From a technical viewpoint, the proximity of the CAD 29.9 medium-term resistance could limit the upside potential on the stock. The uptrend in the short term could be stopped by this level and prices could decrease sharply in the coming sessions. Technical indicators also show an overbought situation and that reinforces this bearish scenario. Thus, there is a higher downside potential than upside.

As a result, the most aggressive investors could take a short position near CAD 28.8 but they need to set a stop loss above the mid-term resistance because the crossing of this level would invalidate our scenario.