Mersen stock falls nearly 5% and threatens its support level at €36.60
Mersen is experiencing a sharp decline on Monday, as the Paris market itself is trending downward in a tense macro context. The decline brings the stock into direct contact with its support threshold, erasing the rebound recorded at the end of last week and amplifying the bearish pressure from the past month.
A decline of 4.68% that breaks through the €36.60 support and falls below moving averages
Mersen is down 4.68% during the session, at €36.64, after briefly breaking through its €36.60 support level to a low of €36.58. The stock has recovered slightly above this level, but this temporary breakdown reflects the intensity of selling pressure on the day. This decline places the value well below its 20-day MA (€38.35, a deviation of -4.46%) and its 50-day MA (€38.27, a deviation of -4.26%), two thresholds that the stock had come close to last Thursday during a bullish session.
The 200-day MA, at €31.49, remains well below the current price, preserving a cushion of 16.35% over the long term. The RSI at 49 is in neutral territory, with no oversold signal, which does not rule out a continuation of the move if the €36.60 support were to be sustainably broken. Over one month, the correction now reaches 10.28%, and over three months, the decline amounts to 16.46%.
A deteriorated macro context on Monday amplifies tensions on industrial stocks
The session is taking place in a particularly charged environment. The VIX is surging more than 14% during the session, signaling a notable spike in volatility on equity markets. The CAC 40 is down 0.86% and the SBF 120 is declining 0.84%, in a market affected by the convergence of several macroeconomic factors. Brent crude exceeds $107 per barrel following attacks on Saudi oil infrastructure and persistent tensions around the Strait of Hormuz, driving up energy costs for European industrials. Furthermore, the week is marked by a series of major monetary decisions: the Fed meets on Wednesday, the Bank of England on Thursday, and the Bank of Japan on Friday, in a context where U.S. inflation stands at 3.4% year-over-year in August, above expectations.
The ECB already raised its rates on September 10. This simultaneous tightening of global financial conditions is mechanically weighing on long-cycle industrial stocks, of which Mersen is part. With a gain of 54.6% over one year, the stock maintains remarkable performance over the long term, but the pressure from the past twelve weeks (-16.46%) reflects an ongoing adjustment. The €36.60 support level remains the key level to watch for the remainder of the session.
