BG Group should enter in a new bearish trend in the coming trading sessions.

Compared to its peers, the company seems overvalued. It has a 3.78x EV/Sales ratio and the security is currently trading 21.9 times its EPS. Furthermore, analysts covering the stock keep downgrading their EPS estimates.

Graphically, the security is trading in a bearish trend in the medium and long terms. In the short-term, the technical rebound on the GBp 794.7 support area toward the GBp 963 mid-term resistance seems over, and this last threshold is likely to stimulate a bearish movement towards the GBp 880.9 support.

Therefore, fragile fundamentals and technical pattern let see a downside potential. Investors can take a short position and aim a return to the GBp 880.9 support area. A stop loss will be fixed above GBp 963 because a breakout of this threshold would invalidate this trading strategy.