Michelin Shares Drop 2.5% and Detach from the CAC 40, Weighed Down by Renewed Tensions in Iran
The Clermont-based manufacturer takes a breather after several weeks of progress, in a Parisian market heavily shaken by a resurgence of geopolitical tensions in the Middle East. However, the stock remains well-oriented in the short term, having set intermediate records in June and early July.
A Decline That Does Not Undermine the Advance Over Moving Averages
Michelin shares lose 2.2% to €34.28 during the session, down from €35.05 the previous day. The decline follows the CAC 40, which drops 2.24%, in the wake of a new military escalation between Washington and Tehran and a surge in Brent crude over 5% for the session, to $76.09. Volatility tightens significantly, with the VIX rising more than 20%, to 18.71.
Despite this setback, the stock remains 6% above its 50-day moving average (€32.34) and 12.4% above its 200-day moving average (€30.51), indicating that the underlying trend is not in question. The RSI at 70, however, indicates an overbought state at the time of the decline, consistent with the profit-taking observed at this level, close to the resistance identified at €35.11.
Recent Momentum Backed by Dense Corporate News
The stock has gained 7.5% over a month and more than 17% over three months, driven by dense corporate activity. Michelin finalized in early July the acquisition of Tex Tech Industries, an American specialist in technical textiles that generated $128 million in revenue in 2025, the third major operation of the year in the Polymer Composite Solutions division. The group also highlighted during its Media Day on June 9 and 10 the specialty tire segment, which accounts for 17% of revenue and displays profitability above average.
The industrial debt reduction movement continues in the United States with the planned closure of the BFGoodrich plant in Tuscaloosa by the end of 2028. The $35.11 area remains the technical threshold to cross to extend the bullish sequence.
