Rayonier could start a technical downward trend after the rebound in recent sessions.

The fundamentals remain very fragile. The security seems highly overvalued compared to other securities in its sector with a P/E ratio estimated at 23.95x for 2014. Moreover, analysts have recently revised downward EPS estimates for the 2 coming years.

Graphically, the stock went through a period of rebound in recent sessions towards the USD 47 medium-term resistance. The share should consolidate near this area. It could act as a stopping point of the upward movement. This scenario suggests a return to the USD 44.25 support area which will be a bearish objective.

The upside seems limited as shown by fundamentals and technical configuration. In contact with the USD 47 resistance, a movement of consolidation could return the stock towards the USD 44.3 mid-term support. As a result, the most aggressive investors could take a short position near USD 47 but they need to set a stop loss above this resistance because the crossing of this level would invalidate our scenario.