The technical rebound, which benefited Evraz last days, is coming to the end.

Regarding company’s fundamentals, we can note their major weaknesses. The debt of the company remains an issue and could threaten its solvency ; the leverage is estimated at 3.54x for the current year. Furthermore, the analysts regularly revise downwards their EPS and revenue estimates for 2013 and 2014.

Technically, the stock has benefited of a technical rebound which led prices close to the pivot point. Now prices are declining and should soon reach the GBp 92.7 long term support. The breakdown of this area is worth considering, which would allow the stock to attain new lowest level.

Thus, a short strategy can be implemented, at the current price, in order to aim, firstly, GBp 92.7. A stop loss must be set above the GBp 105.2 pivot point.