The pharmaceutical group could face difficulties to exceed the EUR 50.1 resistance.

According to financial statements, the biotechnology firm missed analysts’ estimates for earnings on Q1 2014 by almost 8%. Indeed, regardless of higher sales forecast for 2014, lower earnings are expected as margins deteriorate. Moreover, debts may increase from $7.1 million in 2013 to $7.7 million in 2014, for a 2.64x leverage. In fact, revisions made by analysts polled by Thomson-Reuters have been continually downgraded in terms of EPS, that dropped near $3.6 per share from $3.9 twelve months back.

In spite of efforts made to fulfill expectations, the equity still underperforming and the present bullish trend could suffers a bearish reverse in the short term. Prices already approached the EUR 50.10 resistance, level that returns them toward the EUR 48.8 support in a first place and subsequently close to the EUR 47.15. In addition, weekly moving averages orientation let think about an extended decline.

Considering fundamental and technical analysis, investors could open short positions now seeking for the EUR 48.8 target in the very short term but finally aiming the EUR 47.15. The stop-loss order may be set above the entry point at EUR 50.7.