Hermès Shares Drop 3.2% to Over a Year Low
Hermès International shares significantly fell this Tuesday, March 3, amidst geopolitical tensions in the Middle East and a widespread downturn in European markets. The stock declined by 3.2% to 1,904 euros, extending a bearish trend that has been ongoing for several weeks. Over the past year, the stock has now fallen by more than 30%.
Technical Indicators Highlight Weakness
Hermès International's share price is now significantly below its main moving averages, with the MM50 at 2,106.60 euros and the MM200 at 2,172.61 euros, representing a gap of over 12% from the current price. This positioning illustrates the gradual weakening of the trend in recent months. Additionally, the RSI stands at 32, a level indicating a potential oversold zone. This indicator, which measures the speed and magnitude of price movements, suggests that selling pressure has intensified in the short term. The stock has indeed breached the lower Bollinger band, set at 1,975.54 euros, reinforcing the observation of a bearish excess in recent sessions. The next support threshold is identified at 1,967 euros, corresponding to the previous day's closing price, while the nearest resistance is at 2,184 euros.
Market Turbulence Influences Decline
The significant drop this Tuesday is part of a market environment disrupted by military operations in Iran, causing a retreat of 1 to 3% across major European stock exchanges. Although Hermès is not directly exposed to the energy sector, the surge in oil and natural gas prices—with Brent reaching $80.14 a barrel—fuels a risk-averse sentiment that affects high-multiple growth stocks like the luxury giant. Fundamentally, the Paris-based group will publish its first-quarter revenue on April 15, followed by its annual general meeting on April 17. These two events will be crucial in assessing the group's commercial trajectory in an uncertain macroeconomic environment. With a decline of 10.1% over three months and nearly 9.6% over seven days, the current correction places the stock at its lowest level in over a year, significantly distancing the price from its early 2025 levels.
