GTT Stock Drops Nearly 3% and Breaks Its Support at €196.50
In early afternoon trading, the French designer of LNG carrier tanks is losing ground in a stable Parisian market. The stock has broken through a technical threshold monitored for several sessions, as oil continues its correction and the prospect of Iranian crude returning reshuffles the energy sector's cards.
The Stock Breaks Its Support at €196.50 and Drops Below Its Short-Term Moving Averages
GTT stock is down 2.96% at €193.20 during the session, after breaking through its morning support at €196.50, which it fails to reclaim. The stock thus significantly falls below its MM20 (€201.12) and MM50 (€202.50), with a gap of about 4% from each, marking a break in the short-term momentum. The MM200, at €180.87, remains about 7% below the current price and constitutes the next medium-term reference point should the decline continue. The RSI at 44 reflects a weakened stock without an oversold configuration.
The decline reaches nearly 8% over a month, while the performance over a year remains positive at more than 16%. The movement is part of an unfavorable sector context: Brent is down 4.3% in the session at $79.62, losing nearly 17% since June 7. The relaxation of oil prices, amid a US-Iran memorandum foreseeing the reopening of the Strait of Hormuz and the lifting of some sanctions on Iranian crude, weighs on all French oil-related stocks.
A Flurry of LNG Contracts Not Enough to Support the Stock in Session
The decline occurs even as GTT's business activity remains strong. The company announced yesterday a contract from its partner China Chengda Engineering for the design of three 240,000 m³ LNG storage tanks for the Yuedong LNG terminal. These facilities will be the largest in the world equipped with the group's GST technology. Earlier in May, the Saint-Rémy-lès-Chevreuse engineer was also selected to design the tanks for four BW LNG carriers, indicating a well-oriented order book.
The discrepancy between commercial news flow and stock market trajectory illustrates the dominance of macro themes over the energy sector. The break of the support at €196.50 is now the key technical element to monitor: as long as the stock remains below this threshold and its short averages, the short-term momentum is oriented downwards. The MM200 at €180.87 marks the next lower reference point.
