Puma is a major German multinational company that produces athletic and casual footwear, as well as sportswear. The stock is on a downtrend since the last few sessions.

From a fundamental viewpoint, sales on the last three months of 2013 have tumbled more than expected and the same trend is present on the beginning of 2014. Moreover, its EPS and revenue have been revised downward by Thomson-Reuters analysts all over the year. Due to a high valuation of the company (P/E ratio of 26.7x estimated for 2014), investors are motivated to sell the share more than to buy it.

Graphically, the share experiences a technical downtrend since the last five sessions. 20-day moving averages support the fall on prices and the orientation of all other weekly and daily moving averages helps this midterm tendency. This scenario suggest a break through the EUR 203 support and then toward EUR 197, the bearish objective.

Considering fundamental and technical analysis, a short position could be taken if the scenario previously exposed takes place. Then, the entry point is under EUR 203 for a target price of EUR 197. A stop-loss order could be placed above the pivot point at EUR 207.7.