Elis Shares Drop 2% and Fall Below Short-Term Moving Averages
The circular services specialist falls during the session, dragged down by the general retreat of the Parisian market. The stock loses ground after hitting technical resistance the previous day and falls below its short-term moving averages.
A Decline That Brings the Stock Below its 20 and 50-Day Moving Averages
Elis shares drop 2.15% to €26.34 as the market approaches closing, down from €26.92 the previous day. The stock is part of the general decline of the SBF 120, which loses 2.03%, and the CAC 40, down 2.07%. The session is marked by a spike in volatility, with the VIX climbing nearly 12% to 18.02. Today's movement brings the price below the 20-day moving average (MM20) at €27.02 (a -2.52% gap) and below the 50-day moving average (MM50) at €26.84 (a -1.86% gap), after being rejected at the resistance level of €28.22 observed during the previous session. However, the stock still holds a cushion of 3.78% above its 200-day moving average (MM200) at €25.38, which remains the primary anchor point for the underlying trend. The RSI at 51 indicates a balance between buyers and sellers, without any extreme configuration. Over three months, the performance remains positive at 5.53%.
A Market Environment Worsened by New Escalation in the Middle East
The session's backdrop is dominated by renewed tensions between Washington and Tehran. The United States has conducted strikes against Iran following attacks targeting ships in the Strait of Hormuz, and Tehran claims in response to have targeted American military installations in Kuwait and Bahrain. In Ankara, Donald Trump also declared the ceasefire with Iran over. This atmosphere weighs on all European markets, with the DAX down 1.69% and the FTSE 100 by 1.10%. Elis is not directly exposed to this geopolitical context, but the stock follows the general downturn of the sector. The past few weeks have been marked by intense corporate news, including the completion of the acquisition of ServBrazil on July 3 and, earlier in June, the purchase of the Spanish laundry company RS10. The next technical level to watch remains the support at €25.72, which coincides with the 200-day moving average zone.
