The upward trend could be stopped close to the resistance at CAD 30.7 and to the trendline which is coming on this level.

The fundamentals remain very fragile with the high valuation of the stock and downward revisions on EPS. In fact, the EPS estimates for 2014 has been divided by more than 3 during the past 12 months. The security seems highly overvalued compared to other securities in its sector with a P/E ratio estimated at 26.1x for 2014.

Graphically, the stock went through a period of rebound in recent sessions towards the CAD 30.7 medium-term resistance. The share should consolidate near this area. It could act as a stopping point of the upward movement also because a trendline is coming on this level. This scenario suggests a return to the CAD 27.8 support area which will be our bearish objective.

The graphical configuration argues to establish a short position at the current price. The first objective will be fixed near the CAD 27.8 short term support and by extension the CAD 25.9 area. This strategy should be protected by a stop loss above CAD 30.7.