The palladium and platinum mining company Stillwater Mining, should have a new bearish trend in the coming trading sessions.

The rebound recorded in the last trading sessions is not justified by Stillwater Mining’s fundamentals which are still fragile. Indeed, the company is highly valued: analysts estimate it has a 28.05x P/E ratio and a 1.34x EV/Sales ratio for this year. Furthermore, the Thomson Reuters consensus has recently revised downward EPS estimates. It is often an indicator of the coming decline in profitability especially if commodities prices remain low.

From a technical viewpoint, the security is in a bearish trend in the long term and neutral in the mid-term. Even if prices have increased in the short term, the current technical rebound allows the stock to be close to its USD 10.9 resistance. Despite the breakout of 100-day moving average, prices should decrease soon because of the bearish trend in the long term.

Investors can anticipate a return towards support area in the coming trading sessions. They can take a short position in Stillwater Mining company with a target price fixed on the short-term support at USD 9.1. A stop loss order could be placed above the USD 10.88 resistance area.