Legrand Shares Drop Nearly 3% and Lose Ground in the CAC 40
The electrical infrastructure specialist gives back some of its recent rally at the opening of the session. The stock aligns with the decline in European cyclical values, in a Paris market weighed down by increased volatility and a more restrictive tone from central banks.
The stock downgrades among the biggest declines of the CAC 40 after a 10% jump in a week
Legrand shares fell 2.86% to €149.65 at the opening, down from €154.05 at the previous close. The stock is among the biggest losers in the CAC 40, as the Paris index fell 0.87% at the start of the session. This profit-taking comes after a marked bullish sequence, with the price having gained 10.4% over the week and nearly 14% over three months. The day's correction is part of a broader pullback in European cyclical values, with STMicroelectronics, Renault, and Schneider Electric also at the lower end of the Parisian board. In the background, the VIX index jumps more than 20% to 20.17, reflecting a surge in nervousness after a coordinated tightening in the discourse of major central banks recalled yesterday.
The rebound pauses above moving averages, the 155.70€ resistance remains intact
Despite today's decline, the price remains above its three moving averages: €144.64 for the MM20 (gap +3.46%), €148.79 for the MM50 (gap +0.58%), and €139.88 for the MM200 (gap +6.98%). The proximity of the MM50 makes it the first technical reference under which the stock could tumble if the movement intensifies. The rebound that began in mid-June had brought the price back to the resistance identified at €155.70, without crossing it. The RSI at 62 is in the neutral zone without indicating any tight configuration, after having dropped to 29 on June 15 in an oversold reading. As a reminder, Legrand finalized the acquisition of Girtz Industries at the beginning of June, the sixth external growth operation of the year in the data center segment. The most monitored technical support is now at €133.55.
