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.