Legrand shares drop 5.5% and break through all three moving averages

A 5.5% decline that pushes the stock below its three moving averages

Legrand fell 5.46% to €134.10 during the session, after closing Friday at €141.85. This drop pushed the stock below its MA20 (€138.14), its MA50 (€137.86) and its MA200 (€139.63), three reference levels that the price exceeded just last week. The gap to the MA200 now stands at -3.96%, a sign that the technical configuration has deteriorated significantly.

The RSI remains at 55, a neutral level that does not yet reflect any particular selling excess, but the slide below all moving averages in a single session represents a notable configuration change. The support level at €131.40 becomes the next reference to watch, representing a decline of approximately 2% below the current price. Over the week, the stock is down 4.83%, and down 5.4% over one month.

A global monetary shock that tightens the environment for growth stocks

The day falls within a busy week for central banks: the Fed meets on Wednesday, the Bank of England on Thursday and the Bank of Japan on Friday, after the ECB already raised its key rates by 25 basis points on September 10, bringing its deposit facility to 2.50%. Monetary markets assess the probability of a new 25 bp U.S. tightening at 85-90%, in a context where U.S. inflation remained at 3.4% year-over-year in August. This expected monetary tightening mechanically weighs on high multiple stocks, among which Legrand traditionally figures. The CAC 40 fell 0.83% during the session, but Legrand's decline is significantly more pronounced.

When publishing its H1 2026 results on July 29, the company had nonetheless raised its annual targets, reporting record growth of +17% excluding exchange effects driven by data centers. The construction sector, to which the group is exposed through demand for electrical equipment, is meanwhile facing a difficult climate: France's construction business climate barometer stood at -18.2 in August 2026 according to Eurostat data, and housing permits are down 8% year-over-year. All of these pressures explain the severity of today's decline, with the support level at €131.40 serving as the next technical reference.