Lancashire Holdings should undergo some profit-taking after the unjustified rebound in recent sessions.

The company still displaying poor fundamentals. Even if sales are expected to increase on the current fiscal year, its EBITDA is anticipated at lower levels than those registered in prior year. The main fact is that analysts are constantly revising downward their EPS forecasts. In the same time, their forecasts on sales are going higher, corresponding to lower margins.

Graphically, the share is in the middle of a technical rebound that allowed to reach the GBp 659 mid-term resistance. This area could trigger a sell signal for investors in a profit-taking scenario. The GBp 659 correspond to the upper band of a trading range which has been tested several times. It is a good area to become short on the stock.

Therefore, the most offensive investor can benefit from the technical configuration to open a short position. The objective will be fixed near to the GBp 620 support. Only the breakdown of this level would open up new bearish targets toward GBp 591.5. The stop loss will be set above GBp 659.