Nexans Shares Bounce Nearly 2% Aiming to Reclaim €155
The French cable manufacturer continues its recovery in early afternoon trading, in a Parisian market trending upwards. The stock extends the rebound that started the previous day and is approaching a closely watched technical threshold. This movement occurs in a sector context marked by easing oil prices and anticipation of the Fed's decisions.
A Measured Rebound Bringing the Stock Close to Its MM20
Nexans shares are up 1.69% at €150.80 mid-morning, following the CAC 40 which is up by 0.74% and the SBF 120 progressing by 0.71%. The stock continues the rebound that began on Monday, after several sessions of consolidation which brought its weekly performance to -2.01%. Over a month, the cable manufacturer still shows a decline of 7.71%, but maintains a lead of nearly 28% over three months and more than 50% over one year. Technically, the price remains 3.20% below its MM20 at €155.79, which now appears as the primary target to confirm the recovery.
The MM50 at €149.60 has been regained, with the price slightly above it by 0.80%. The MM200 at €131.59 remains significantly behind (+14.60% difference), indicating a still bullish underlying trend. The RSI at 44 remains neutral, with no signs of exhaustion or acceleration, while the stock is trading above its support at €144.90, which was briefly broken last week and then reclaimed.
A Favorable Sectoral Context Between Oil Relaxation and Fed Meeting
The rebound occurs in a more relaxed market environment. The preliminary agreement between Washington and Tehran, signed on Sunday, extends the 60-day ceasefire and plans for the reopening of the Strait of Hormuz. Brent dropped about 4% on Monday, around $83, reducing the energy risk premium weighing on European industrialists. This easing benefits all cyclical stocks listed in Paris, including Nexans due to its exposure to infrastructure and energy transition. In the background, the FOMC begins its two-day meeting this Tuesday, the first under the chairmanship of Kevin Warsh.
The fed funds rate remains in the range of 3.50%-3.75%, and the updated projections of the members should confirm a status quo on the key rates in 2026. Wednesday's press conference will be closely watched to clarify the reaction function of the new Fed. Regarding the cable manufacturer's own schedule, the market remembers the completion in early June of the acquisition of Republic Wire in the United States, which broadens the group's North American industrial footprint. The sustainable reconquest of €155.79 will be the next technical milestone to monitor.
