Engie Shares Dip 1.72% at Close Despite Share Buybacks
Engie's stock closed down 1.72% at 23.40 euros this Tuesday, January 13, after reaching a peak of 23.81 euros the previous day. This correction occurred in a context of moderate volumes, with only 0.16% of the capital traded during the day. Nevertheless, the stock remains close to its upper Bollinger band at 24.03 euros, indicating that upward pressure is still present. Over three months, the performance has been spectacular with a rise of 23.68%, driven by an RSI of 86 indicating a distinctly overbought zone. This high level partly explains the profit-taking observed this Tuesday, as the stock is technically overbought. The announcement the day before of the launch of a buyback program involving 2.2 million shares over ten days starting January 12 did not suffice to support the price. These buybacks aim to cover employee share ownership plans, with a possibility of partial cancellation. Additionally, on January 12, Goldman Sachs raised its price target from 25.80 to 26.50 euros, reaffirming its buy recommendation, suggesting a potential upside of 13.2% from the current price.
Despite this temporary setback, the technical structure remains favorable. The price is significantly above its moving averages: 7% above the MM50 at 21.89 euros and 19.5% above the MM200 at 19.58 euros. The MACD indicator also shows a positive setup with a MACD line at 0.52, well above the signal line at 0.35, confirming a medium-term bullish trend. The immediate resistance threshold is at 23.81 euros, a level reached on Monday, while support is at 21.41 euros. UBS had already raised its price target from 21 to 26 euros on January 8, representing a potential of 11.1%, strengthening the positive consensus among analysts. Volatility remains low at 3.63% over a month, indicating a controlled trend. With an annual performance of 49.62%, Engie ranks among the best performers in the CAC 40. Investors will now watch whether the stock can sustainably break through the 24 euro threshold while digesting the current overbought zone.
