Pingdingshan Tianan Coal. Mining Co., Ltd. : Bearish trend should continue
Entry price | Target | Stop-loss | Potential |
---|
CN¥9.19 |
CN¥0 |
CN¥9.8 |
+100% |
---|
Pingdingshan Tianan Coal Mining operates underground coal mining, coal washing and processing. The company also provides ground transportation services.
From a fundamental viewpoint, the group is in a bad financial situation.
The financial situation of the company is worrying especially because of commodities weakness. Analysts have recently downgraded their forecasts for earnings per share. This indicator is often a precursor of a declining profitability and a worsening climate of investor confidence.
Technically, the share is in a downward trend. The moving averages are decreasing and are still above prices, thereby stopping any rebounds. The security is going toward the CNY 7.95 support, a level that will represent the first target.
Taking into account fundamental and technical elements, investors can initiate a short position on the stock with a price target at CNY 7.95. A return towards CNY 9.8, the 20 day moving average area, will invalidate the bearish strategy, which justifies a stop loss.
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