Nexans Shares Bounce Back 4.01% After Monday's Drop
The industrial cable manufacturer shows a technical rebound this Tuesday morning, following its largest daily drop in several months on Monday. The market is digesting a leadership change announced the day before.
Opening Gains
The stock rose by 4.01% at the opening this Tuesday, reaching 119.30 EUR compared to 114.70 EUR the previous day. However, this rebound is part of a challenging weekly dynamic, with a cumulative loss of 10.17% over the last seven days. Trading volumes remain moderate, with 0.28% of the capital traded, a level that indicates some investor restraint. Over three months, the stock still shows a gain of 7.87%, but it has fallen by 11.63% over the past year, while the CAC 40, down 0.8% this Tuesday, has risen by 3.87% over the past twelve months.
Recovery Following Leadership Change
This recovery occurs after a session marked by a drop of 9.26%, triggered by the announcement of a change in general management. The board of directors appointed Julien Hueber as CEO to replace Christopher Guérin, effective immediately on October 13. This decision, presented as a move to optimize operational performance, came just days before the third-quarter results are due to be published on October 23. The new leader, aged 55, had been heading the European division PWR Grid & Connect Europe, which accounts for more than a third of the group's activity with 23 industrial sites.
Technical Perspective
Technically, the current price is oscillating just above the support level tested on Monday at 114.70 EUR, but remains significantly below the 50-day moving average located at 131.32 EUR. This gap of nearly 10% reflects the recent downward pressure, although the stock is still well above its 200-day moving average set at 107.48 EUR. The RSI, which measures the relative strength of a price movement, shows a level of 29, very close to the oversold zone generally located around 30, suggesting that the correction movement might be nearing a technical low. The Chaikin Money Flow, an indicator that assesses the balance between buying and selling flows by weighting the volume by the position of the price in its daily range, shows a slightly negative value at -0.06, confirming a selling dominance in the recent period despite the day's rebound.
