EssilorLuxottica Shares Drop Nearly 30% in Three Months, €190 Support Level Threatened
EssilorLuxottica fell by 1.86% this Monday during the session, to €195.55, amid high nervousness on European markets due to escalating tensions between Washington and Tehran. The stock has declined by more than 29% over three months, confirming a marked downward trend since the start of the year.
Market Downturn Amidst Geopolitical Tensions
EssilorLuxottica shares dropped 1.86% from last Friday's close of €199.25, bringing the price to €195.55 in early afternoon trading. This decline is part of a general pullback in the Paris market: the CAC 40 is down 1.01% during the session, at 8,176.58 points, while the SBF 120 also lost 1.01%. Other major Parisian stocks are facing similar pressures, like LVMH (-1.34%) and L'Oréal (-1.24%). The geopolitical context weighs heavily on the entire European stock market. The announcement this Monday of a U.S. naval blockade against Iran, specifically targeting access to the Strait of Hormuz, triggered a surge in oil prices above $100 per barrel. This major military escalation fuels fears of an energy shock that could affect global consumption, an unfavorable factor for a group like EssilorLuxottica whose business largely depends on demand for high-end consumer goods.
Technical Analysis Reveals Downward Momentum
Technically, EssilorLuxottica's stock price is significantly below its 50-day (€222.21) and 200-day (€262.38) moving averages, a substantial gap that reflects the deterioration in the stock's momentum over several weeks. This positioning, combined with an annual performance of -18.93%, indicates a well-established downward trend. The Relative Strength Index (RSI) is at 43, in a neutral zone but trending downward. Moreover, the stock is positioned in the lower part of the Bollinger Bands, at 39% of the range defined between €187.36 (lower bound) and €208.35 (upper bound), signaling persistent selling pressure without yet reaching the oversold threshold. The next identifiable technical support is at €190.20, a level that could be tested if market conditions continue to worsen. Regarding the calendar, the group will publish its first quarter 2026 revenue on April 22, followed by the annual general meeting on April 28. These events could be crucial catalysts for the stock's short-term trajectory.
