Fresnillo is in a downtrend toward its lowest levels.

From a fundamental viewpoint, the group has not sufficient quality to hope for a continuation of its bullish trend. Indeed, Surperformance rating largely punishes Fresnillo because of an excessive valuation with an EV/Sales ratio higher than its peers. Despite an anticipation of leverage improvement for the next two years, the financial situation of the company is still fragile.

Graphically, the security is trading in a bearish trend. In the short-term, the stock has rebounded on the GBp 866.5 support area toward its mid-term resistance. This rebound seems technical and is not likely to continue. Indeed, moving averages in the long-term are still in a downtrend and that argue for a continuation of the decrease in prices.

Investors can anticipate a return toward support area in the coming trading sessions. They can take a short position in Fresnillo. The target price is fixed on the mid-term support at GBp 1025. A stop loss order could be placed above the GBp 1165 resistance area.