Security of the European leader sugar manufacturer has been trading within a symmetrical triangle since the last quarter of 2013.

From a fundamental viewpoint, bad figures are expected on the company for the current year. Reductions of 31% are anticipated concerning company’s operating margin and even worse are net margin forecasts (-43%). Suedzucker should report slackening sales and upgrading debts by the end of the fiscal year. Thus leverage should come to 0.99x from 0.39x in 2013. Analysts estimates in terms of EPS reveal its weakened financial status, so in the last 12 months decreasing of 31% for 2014 and 58% for 2015.

Technically, the share has been evolving within a symmetrical triangle. A first wave in the upper side of the triangle took place by the end of 2013 and a second one should be displayed in the following sessions as a downturn is shaped. This downtrend is meant to help the equity to resume its path toward the target at the EUR 20.4 short term support.

Taking all this into account, most active investors could take a short position if the EUR 22.6 threshold is not broke. Then the target price will be set at EUR 20.4. A stop-loss order could be placed above the entry point at EUR 23.4.