Spectra Energy Partners is in a bad financial situation which should drives the stock down.

Indeed, the financial leverage is at 6.77x in 2012 (sector average : 5.13x). Further, analysts largely revised downward their EPS estimates for 2014 (approximately -40% since June).

Technically, the trend is bullish in the medium and long term. However, prices knew a sharp decrease upon contact with USD 46.6 and the 20-day moving average is reversing. A breakdown of the USD 40 major threshold would argue in favor of a sharp decrease towards USD 34.6.

Thus, a short position can be opened in case of a breakdown of USD 40, confirmed in daily closing price. A stop loss must be placed above the effective entry point.