Michelin Stock: 4.31% Drop at Midday on Thursday, October 9
The tire manufacturer records the steepest decline in the CAC 40 this Thursday at mid-session, amid a context where the Paris market itself shows a slight increase of 0.19%.
Current Trading Session
Michelin's stock has fallen by 4.31% to 29.53 euros at midday, continuing a negative trend already observed over the last few sessions. The weekly performance stands at -4.56%, while the quarterly trend shows a decline of 6.85%. Over one year, the cumulative loss reaches 14.85%, a stark contrast to the CAC 40’s increase of 7.37% over the same period. The trading volume represents 0.17% of the capital, a moderate level indicating measured investor participation despite the significant downward movement. The price is now below its technical support threshold identified at 30.54 euros, marking a break in level that could increase selling pressure in the short term. Resistance, positioned at 31.58 euros, is gradually moving away, while the monthly volatility of 3.28% remains relatively contained for an industrial value of this size. The nearly zero beta (-0.02) confirms very low sensitivity to movements in the Paris market, a characteristic that partly explains the divergence from the index.
Recent Developments
This decline follows a conference call organized by the group to discuss its activity in the third quarter. The tire manufacturer indicated it anticipates a sales volume decline of about 5% for the July-September period, a deterioration more pronounced than analysts had expected. This announcement comes in a challenging sectoral context, where nearly all automobile manufacturers, including BMW the day before, have issued warnings on their results. The group will officially reveal its third-quarter revenue on October 22. Several analysts now suggest the possibility of a downward revision of the annual 2025 targets, although some banks maintain positive recommendations on the stock. Jefferies has confirmed its buy rating with a target price of 43 euros, while Oddo BHF has reaffirmed its outperform recommendation but lowered its target from 42 to 36 euros. These adjustments reflect the uncertainties weighing on the group's activity in an environment marked by persistent weakness in the original equipment markets, particularly in North America and Europe.
Technical Analysis
From a chart perspective, the stock is now significantly below its 50-day moving average, set at 31.28 euros, which indicates a strong bearish pressure in the short term. The gap has also widened with the 200-day moving average, positioned at 32.25 euros, signaling a weakening of the momentum over a longer period. The Relative Strength Index (RSI) remains at 48, a neutral level that indicates neither oversold nor overbought conditions, but reflects a precarious balance between buyers and sellers. The Bollinger Bands, ranging from 30.41 to 31.56 euros, tightly frame the recent fluctuations of the stock. The current price is at the lower limit of this range, which could signal an attractive price level for some investors, or alternatively foreshadow a breakout on the downside if the decline continues. The MACD, with a main line at -0.15 slightly above its signal line at -0.20, forms a positive histogram of 0.05, suggesting a possible slowdown in the bearish momentum without indicating a reversal at this stage. The negative Chaikin Money Flow at -0.15 nevertheless confirms a dominant selling pressure over recent sessions.
