Eramet's Stock Plummets 5.58% at Close, Breaking a Key Support Level
Eramet's shares underwent a correction of 5.58% this Friday, November 21, closing at 48.86 euros, extending a downward trend that has been affecting the mining group for several weeks. Contrary to a stable CAC 40 (+0.02%), the stock traded 0.28% of its capital in moderate volumes. The decline is part of a particularly deteriorated technical context, marked by a drop of 10.35% over a week and 7.11% over a year.
Continuous Decline Throughout the Session
After opening in negative territory, the stock continued its decline throughout the session, closing at 48.86 euros, down 2.89 euros from the previous day (51.75 euros). The stock is moving further away from its 50-day moving average set at 56.36 euros, confirming persistent bearish pressure. Over a month, the drop reaches 4.29%, while over seven days, the 10.35% drop illustrates an acceleration of the selling movement. The stock also performs significantly below the CAC 40, which shows an annual increase of 10.89%, widening the gap with the Parisian index. The support threshold of 51.75 euros, corresponding to the closing price of the previous day, Thursday, November 20, has been breached downwards, while the major resistance remains set at 65.80 euros. The stock is now in a zone of technical fragility, in full bearish acceleration since the beginning of November. The volatility over a month remains high at 9.76, reflecting the erratic movements that characterize the stock for several weeks in a difficult sectoral context.
Continued Impact from Fundamental Factors
The stock continues to suffer the repercussions of several fundamental factors. In September, the agencies Moody's and Fitch downgraded Eramet's long-term credit ratings, reflecting operational difficulties, while the third quarter 2025 revenue, published at the end of October, revealed a decline of 10% to 720 million euros. The persistent weakness in metal prices, particularly manganese and nickel, combined with tensions in Gabon regarding local transformation goals, continues to weigh on investor sentiment. Moreover, the group continued its share buyback program during November, with 16,500 shares repurchased between November 10 and 14 at an average weighted price of 53.50 euros, as part of free allocations to employees. However, this technical operation has not been sufficient to stem the bearish momentum of the stock.
Technical Indicators Confirm Stock Fragility
From a technical standpoint, two indicators confirm the fragility of the stock. The RSI is set at 19, an extreme oversold level that reflects the intensity of selling pressure. In theory, this threshold could foreshadow a technical rebound, but the absence of an immediate reversal signal calls for caution. Meanwhile, the MACD remains in negative territory with a line at -1.43, below its signal line at -1.30. The MACD histogram at -0.12 indicates that the bearish divergence is maintained, suggesting that the negative momentum is not yet exhausted. The stock is now trading well below its 200-day moving average (52.09 euros), confirming a fundamental bearish trend. The negative CMF at -0.12 also reflects a predominance of outgoing flows, tending to validate the persistence of a selling climate. In the short term, breaking the support at 51.75 euros could trigger a new wave of automatic sales, with a risk of seeing the stock test new lows in the absence of a positive catalyst.
