CAE could start a technical downward trend after the rebound in recent sessions.

Graphically, the stock went through a period of rebound in recent sessions towards the CAD 11 resistance. The share should consolidate near this area. It could act as a stopping point of the upward movement. This scenario suggests a return to the CAD 10.4 support area which will be a bearish objective.

The technical configuration lead us to predict a consolidation phase, at least in the short term. The CAD 11 should play its full role and stop the upward trend initiated in the short term. Therefore, to take advantage of this technical correction, a short position may be opened in the current area to target CAD 10.4. In case of further acceleration, the stop loss will be triggered above the CAD 11.