Shares of one of major players in the sportswear market could have serious difficulties to exceed the EUR 207.3 resistance.

Financial data testify of its incapacity to come back to the top that it has enjoyed in 2012. In fact, sales dramatically dropped from 2012 to 2013 by more than 8%, mainly due to aggressive advertising from Nike and Adidas, its principal competitors from where the second one a compatriot. Even if sales are expected to slightly increase, operating margins are supposedly to decrease by 13%. Moreover, the company is overvalued for a P/E ratio of 29.2 times its benefits which definitely crack investor’s intentions to buy and guide them into a seller bias. In addition, consensus among analysts remains seller.

Technically, the stock showed a spinning top the last sessions that clearly represent savers indecision in the possible continuity of the current bullish trend. Additionally, daily and weekly moving averages mark an open interest on a downturn. However, prices could reach the EUR 207.2 resistance before confirming the fall.

Since there is no news about possible innovations or positive actions taken by the company direction, most active investors could sell Puma shares having as target the EUR 196 support line. Thus, the stop-loss will be placed over the short term resistance at EUR 209.4.