Thales Shares Test Technical Support at €237.90 After 11% Decline Over a Week
Thales shares fell nearly 2% this Friday morning, reaching their technical support threshold at €237.90. The drop is part of a challenging week for the defense and electronics group, which saw its share price fall by more than 11% in seven sessions. The CAC 40, down by 1.05% during the session, also influences the stock's dynamics.
Despite Notable Industrial News, Thales Struggles
Thales's decline occurs despite significant industrial news. On April 20, Thales Alenia Space, Airbus, and RADMOR formalized a cooperation agreement for the development of a geostationary military telecommunications satellite for Poland. The ceremony was held in Gdansk, attended by the Polish Minister of Defense and the French Minister of the Armed Forces, highlighting the political dimension of the partnership. Despite this contract, the stock did not find upward momentum. Two days later, BNP Paribas lowered its price target from €260 to €255, while maintaining a neutral recommendation. At the current price of €237.90, this revised target represents a gap of about 7% from the target price, without constituting a clear buy signal. It is worth noting that the group's general assembly is scheduled for May 12, an event that could provide new insights into the group's outlook.
Technical Analysis of Thales's Stock Price
From a technical standpoint, Thales's stock price is currently at its identified support level of €237.90, a key level whose breach could pave the way for an extension of the downward movement. The stock is at the lower end of the Bollinger Bands, only 7% above the lower bound set at €234.67, signaling a potential oversold zone. The RSI, a momentum indicator that measures the relative strength of the movement, stands at 40, a level that confirms selling pressure without yet falling below the critical threshold of 30. Moreover, the price has significantly distanced itself from its 50-day and 200-day moving averages, located at €253.07 and €245.78 respectively, illustrating the magnitude of the recent correction. Over three months, the stock's performance is -7.97%, and over one year, the decline is -5.14%. Elsewhere on the Paris stock exchange, Airbus is down 2.78% and Schneider Electric by 1.47% in session, in a broadly declining European market.
