Coty's Stock Plummets to a Record Low of €2.04, Down 61% in One Year
On Monday, Coty's shares hit a new all-time low of €2.0395, breaking the previous record set on March 6. However, the stock rebounded by 2.26% to €2.0855 by midday, amidst a declining European market trend. Over the year, the stock has fallen by more than 61%.
Historic Low and Partial Recovery
In early trading, Coty's stock price breached its historical low, dropping to €2.0395 before partially recovering. This new low extends a significant downward trajectory: the stock has lost 4.25% over seven days and nearly 29.5% over three months. The mid-morning rebound occurred as European markets were trending downwards. The CAC 40 was down 2.03% during the session, while the DAX fell by 1.59%. In Asia, the Nikkei 225 closed down 5.20%. The VIX, which measures the implied volatility of the S&P 500, had jumped 12.29% in its last quote on March 5, reaching 23.75 points, indicating increased nervousness in global markets. In this tense climate, Coty's slight recovery should be viewed in light of the overall negative trend affecting the stock.
Technical Analysis Perspective
From a technical analysis standpoint, Coty's stock is significantly below its main moving averages. The price, at €2.0855, is well below the 50-day moving average of €2.48 and even more so from the 200-day average of €3.39, indicating a firmly established downward momentum over multiple time horizons. The gap between the current price and the 200-day moving average, over 38%, highlights the extent of the depreciation accumulated. The Relative Strength Index (RSI), at 37, is approaching the conventionally set oversold zone at 30. This level suggests that selling pressure dominates, while also hinting at the possibility of a short-term bearish excess. The nearest support is at €2.04, almost exactly the new low reached this Monday. In resistance, the level of €2.90 represents the next significant hurdle.
