Ladbrokes, the British gamin manager, encounters several difficulties to move on the rally.

From a fundamental viewpoint, the high rollers division suffered a backlash. Recent releases revealed deteriorating financial statements, as earnings fell by £6.5 million, or 2.3% in the first quarter. In addition, the Jefferies notation agency, lately cut price target on Ladbrokes. The yearly decrease on net margins does not help on generating better results. For 2014, also spending is expected to stay at similar levels, thus no major improvements on leverage could be awaited. Downward revisions made on EPS during the last 12 months, an average decrease of 40% for both 2014 and 2015.

Shares on Ladbrokes evolve in a falling wedge and got overbought by the beginning of the month. The equity approached the short run resistance but without successful it came down after testing it. Indeed, the hanging man candlestick in the GBp 154 area signaled the start of the selling pressure and broke the positive path hold by the security until this session. Graphically, further technical elements suggest a prevailing bearish trend.

Considering fundamental and technical analysis, investors could sell Ladbrokes at current prices, looking for a target price at GBp 130. A stop-loss order could be placed at GBP 160.7.