Below its 37.24 € intraday support level, Eramet stock rebounds with an RSI of 23
The mining and metallurgical group bounces back mid-morning in a well-oriented Paris market. It recovers after falling below a monitored technical threshold, following a session marked by confirmation of its financial reinforcement.
A 37.24 € support level breached then recovered intraday
Eramet stock gains 2.85% to 38.30 €, placing it among the strongest gainers of the SBF 120, which advances 0.56%. The security nonetheless plunged below its 37.24 € support level intraday, reaching a low of 37.04 € before climbing back above. The RSI at 23 signals an oversold configuration, following a 16.12% decline over one week.
The share price remains far from its moving averages: it is 13.09% below the 20-day MA (44.07 €) and nearly 28% below the 200-day MA (53.19 €). French debt is also taking center stage on the market: the 10-year OAT is at 4.86% according to the latest Bank of France reading, 5 basis points from its recent peak of 4.90%, in a context of budget debates in the Assembly.
A 500 M€ capital increase planned for the fourth quarter
In a statement published on October 12 in the evening, Eramet confirmed its 500 M€ capital increase with preferential subscription rights, announced in February. The group considers it essential for restoring its financial situation, meeting its banking covenants and pursuing its strategy. The operation occurs as the security has fallen 37.47% over one year.
On the analyst opinions front, CIC Market Solutions maintained its hold rating yesterday, with a price target of 47 €, representing a level nearly 23% above the current price. The next technical reference point is the 37.24 € support level, which the security has just tested.
