Simpson Manufacturing through its Simpson Strong-Tie Company subsidiary, designs, engineers, and manufactures wood-to-wood, wood-to-concrete, and wood-to-masonry connectors and shear walls. The Company's other subsidiary, Simpson Dura-Vent, designs, engineers, and manufactures venting systems for gas and wood burning appliances.

The company is fragile. Financially, the group is in a difficult situation with a high price earnings ratio estimated at 30x for the current year. Forecasts downgraded by analysts regarding earnings per share reflect the lack of visibility in the short term.

Technically, the share is in a downward trend. Moving averages are decreasing and are still above prices, thereby stopping any rebounds. The security is going toward the USD 23.69 support, a level that will represent the first target. Therefore, we could take a short position to benefit from the downward trend. The security could quickly go toward the next support area located at USD 23.69. A stop loss will be placed above 20 days moving average. If this threshold is crossed, this bearish strategy will be cancelled.