Premier Oil has finished its rebound and should now start a bearish trend.

Analysts recently revised downward EPS estimates. From now on, Thomson Reuters consensus estimates a GBp 0.64 EPS for the current year and GBp 0.77 for the next year. On this basis, the security is currently trading respectively 8.92 and 7.48 times its sales. There is a downside risk because of the negative momentum, poor fundamentals and reduced business predictability. Indeed, the company has an EV/Sales ratio of 2.51x.

Prices are in uptrend, in the very short term, but it should be stop soon. The security is still under its 20-day moving average and the GBp 374.2 resistance, a bearish configuration might happen in the coming trading sessions.

Thanks to all these elements, most active investors can take a short position in Premier Oil and anticipate a pullback toward GBp 351.1. A stop loss will be placed above the GBp 374.2 resistance.