Imagination Technologies is downward oriented for 5 months. The bearish trend does not shows any sign of weakness and is expected to continue in the coming trading sessions.

Group's fundamentals are fragile. The stock is over-valued with a P/E ratio of 40.34x and an EV/Sales ratio of 4x for 2013. Further, analysts from the Thomson Reuters consensus revise regularly and largely downward their EPS estimates (-66% year over year).

Technically, the trend is bearish on all time scale with downward oriented daily and weekly moving averages. There is no technical configuration which may help buyers to take the upper hand. Thus, we expect sellers to keep the advantage as long as prices are below the 20-day moving average.

A short position can be opened at the current price, in order to comeback to the GBp 235.1 support. A stop loss must be placed above the 20-day moving average, currently around GBp 250.