Elis Shares Climb 2% and Break Through a Key Resistance
The circular services specialist regains momentum in the mid-afternoon, buoyed by a decidedly bullish European session. The intra-session breach of a closely watched technical threshold has revitalized the stock.
The Stock Breaks Through Its €27.72 Resistance and Stays Above Its Moving Averages
Elis gains 2.07% at €27.56 in the mid-afternoon, following a CAC 40 which is up by 0.66% and an SBF 120 that has risen by 0.63%. The stock has broken through its resistance at €27.72 during the session and remains above it, at €27.56 in recent trades. This movement is part of a coherent technical configuration: the price is moving above the MM20 (€26.44, a gap of +4.24%), the MM50 (€26.66, +3.38%) and the MM200 (€25.21, +9.32%), an alignment that confirms the medium-term momentum. The RSI at 58 remains in neutral territory, with no overheating signal, while the MACD has moved back into positive territory (histogram at 0.11). Over three months, the stock has posted a gain of 12.67%, compared to a limited monthly decline. Today's rebound is part of a European session driven by a better-oriented German Ifo at 85.6 in June and by easing oil prices, with Brent retreating to around $72.5 amid normalization of flows through the Strait of Hormuz. This calm on the energy front tempers inflationary pressures in the eurozone, a context that forms the backdrop of the session without directly impacting Elis's core business.
Sustained Operational Activity
On the operational side, the group abandoned on June 22 its acquisition of OCL Laundry Services in Ireland after several months of discussions with the local competition authority, as indicated in the withdrawal of notification filed with the CCPC. A few days earlier, the company had completed the acquisition of the Spanish laundry RS10, effective since June 1, which strengthens its presence in Catalonia in the healthcare segment. Governance was also adjusted at the beginning of June with the reappointment of Xavier Martiré as the chairman of the executive board and the arrival of Yann Michel. Beyond the coupon detachment, the support at €25.72 remains the reference level to the downside, while the €27.72 zone needs to be confirmed at the close to validate a technical breakout.
