Eutelsat Shares Fall 3.31% at Mid-Session After Sharp Rise the Previous Day
Eutelsat's satellite operator shares are down 3.31% at midday on Friday, October 10, bringing the price to 3.80 euros after closing at 3.93 euros the previous day. This correction follows a session where Eutelsat was the top gainer in the SBF 120 with a 7.97% increase. Over the week, the stock remains well-oriented with a 9.2% increase, while the three-month performance is at 8.11%. Since the beginning of 2025, the stock has seen a remarkable increase of over 70%, driven particularly by renewed interest in the space sector amid tense geopolitical context.
Profit-Taking Slows Momentum
The decline observed this morning can be partly explained by profit-taking after the strong upward momentum in recent days. The current price encounters resistance at the level of 3.93 euros, precisely the closing price of the previous day, which temporarily hinders progress. The Relative Strength Index (RSI), now at 75, indicates that the stock is in an overbought zone, a situation that typically reflects an excess of buyer enthusiasm and may precede a consolidation phase. Trading volumes remain moderate, representing 0.17% of the capital, a level that suggests there is no panic movement despite the decline. Several recent events have contributed to the stock's surge in recent days. Last week, Eutelsat announced a multi-year strategic partnership with Tusass, the public telecommunications operator in Greenland, for the deployment of low-orbit connectivity services. Additionally, shareholders approved a capital increase of approximately 1.5 billion euros at the end of September, aimed at reducing debt and funding the development of the satellite constellation. Finally, a recent valuation analysis by a specialized firm estimated that the stock could be undervalued by nearly 85% according to a discounted cash flow method, which has attracted new investors.
Positive Medium-Term Technical Outlook
Technically, the stock maintains a positive medium-term dynamic despite today's decline. The MACD, a momentum indicator that measures the convergence of moving averages, remains in positive territory with a line at 0.17 above its signal line at 0.10, confirming that the bullish trend is still intact at this stage. The MACD histogram, displaying 0.06, indicates a slight acceleration of the buying movement in previous sessions, even though today's decline could mark a pause. The price is currently above its 50-day moving average, located at 3.18 euros, validating the bullish nature of the short-term trend. The monthly volatility, measured at 17.81%, reflects the extent of price fluctuations observed in recent weeks, significantly higher than many stocks on the Paris market. This high volatility is accompanied by a very low beta of 0.11, meaning that Eutelsat's movements are minimally correlated with those of the CAC 40, which is up only 0.09% at mid-session. The Bollinger Bands, currently framing the price between 2.84 euros and 3.84 euros, show that the stock is very close to the upper band, confirming recent buying pressure while suggesting a possible stabilization phase in the short term. The nearest technical support is at 2.80 euros, providing a safety margin in case the correction continues.
