Michelin Stock: 2.09% Rebound at Close After a Week Under Pressure
Michelin's stock ended the session on Tuesday, October 21, with a gain of 2.09%, reaching 27.89 euros. This rebound occurs amidst high volatility for the Clermont-based manufacturer, whose shares have been under pressure since the announcement of a downgrade in its annual targets.
Session Closing Details
At closing, Michelin's stock showed a gain of 2.09% at 27.89 euros, after opening at 27.32 euros the previous day. Trading remained moderate with a capital turnover of 0.24%, indicating contained activity on the stock. This daily increase contrasts with a negative weekly performance of 2.72%, as the stock underwent a sharp correction at the beginning of last week. Over three months, the decline reaches 13.41%, while the annual performance shows a decrease of 18.74%. For comparison, the CAC 40 has progressed by 8.48% over the year and gained 0.64% this Tuesday. Michelin's stock is thus moving against the Parisian market trend since the beginning of the year, reflecting the group's cyclical difficulties.
Factors Behind Recent Volatility
The recent volatility can be explained by the downward revision of annual forecasts. The group has lowered its forecast for operating income at constant exchange rates to between 2.6 and 3 billion euros for 2025, down from the previously anticipated 3.4 billion. This revision stems from a marked deterioration in the economic environment, particularly in North America where third-quarter volumes fell by nearly 10%. The manufacturer has pointed out several pressure factors: the collapse in first-time demand for heavy trucks and the agricultural sector, a weakened heavy truck replacement market, as well as the impact of tariffs on American imports. An additional 25% tax has been applied since April on imported cars and spare parts in the United States, a market representing a third of the group's revenue. The weakening of the US dollar has also weighed on the forecasts for available cash flow, now expected between 1.5 and 1.8 billion euros. The group will publish its third-quarter sales figures this Wednesday, October 22.
Technical Analysis of the Stock
Technically, Michelin's stock is in a marked weakness zone. The price of 27.89 euros remains well below the 50-session moving average, set at 30.74 euros, and the 200-session moving average, which is at 32.10 euros. The gap between these two long moving averages indicates an established bearish trend. The RSI at 28 indicates an oversold situation, suggesting that the stock has undergone a significant correction in the recent period. The immediate support threshold is at 26.11 euros, a level tested during the sharp decline on October 14, while resistance is positioned at 31.58 euros. The Bollinger Bands frame the stock between 26.07 euros and 33.14 euros, reflecting the current volatility amplitude of 11.41. The MACD remains in negative territory with a line at -1.05 and a signal at -0.68, confirming the lack of short-term bullish momentum.
