Detour Gold Corporation explores for and produces gold in Canada. The company is, therefore, highly exposed to gold's prices. We expect the latter to drive down the stock towards the next support level.

Neither gold price nor company's profits are well oriented. The firm lost 38.5 million Canadian dollars in 2012. Further, analysts regularly revise downward their EPS estimates : they are less and less confident about the firm's ability to earn money.

As gold, the security is just below a major resistance level (CAD 11.9) which should, helped by the 100-day moving average, reduce the buyer flow. Thus, we expect prices to come back to CAD 10.

A short position can be opened at the current price in order to aim CAD 10, corresponding to the gap, opened on 22 July. A stop loss must be placed above the CAD 11.9 resistance.