Tiffany & Co stock is likely to see a strong decline due to its fundamental and technical configuration.

The company has reported its third quarter results less than the previous period. The announcement missed Wall Street forecasts: Sales (-1%), Net Income (-62%), Earnings (-3%). Moreover, the company lowered its sales objectives, targeting an increase between 5 and 10% against 10% approximately previously. Also, Tiffany expects full year earnings in the range of USD 4.20 to 4.30 per share, while analyst’s consensus is set at USD 4.30.

Technically, the security has rebounded upon contact with its USD 94.35 short term support. Prices have slightly crossed their USD 10.30 resistance but remains on their pivot point. The stock should undergo some profit-taking after this upside movement. Also, technical indicators show an overbought situation and the 20 day moving average remains flat on weekly data.

According to those fundamental and technical factors, it would be opportune to open a short position in order to take advantage of this bearish scenario. The target price will be the USD 98.50 pivot point then the USD 94.35 support. However, this trading strategy should be covered by a stop loss at USD 113.2, in case of a bullish movement.