Nexans Shares Break Key Support at 115 Euros Amid Oil Price Surge
Nexans ended the week on a negative note, dropping 1.99% to 113.10 euros this Friday. The cable specialist's stock has now fallen 4.56% over the past seven days and 7.67% over three months, amid widespread tension in the European stock markets. The CAC 40 itself was down 1.40% during the session.
Key Support Level Breached
The highlight of the session was the breach below the support threshold identified at 115.40 euros. Nexans now trades below this level, closing at 113.10 euros, indicating a deterioration in the stock's chart pattern. The price is significantly below its 20, 50, and 200-day moving averages, positioned at 120.57, 126.88, and 123.54 euros respectively, confirming a bearish trend established over several weeks. The RSI, an indicator measuring the stock's momentum, stands at 41, an intermediate level that does not yet indicate overselling but reflects weakened momentum. The next technical milestone to watch is the lower boundary of the Bollinger Bands at 115.16 euros, a level now surpassed. The nearest resistance is at 142.20 euros, over 25% above the current price, illustrating the magnitude of the correction suffered in recent months. However, over one year, the stock still maintains a positive performance of 11.43%, indicating that the current pullback is part of a correction following a significant prior rally.
Market Tension Influences Decline
Nexans' decline occurs in a tense market environment. The CAC 40 was down 1.40% during the session this Friday, and the SBF 120 lost 1.39%, in a climate marked by soaring energy prices linked to the conflict in the Middle East. The Brent crude oil now exceeds 107 dollars, up 50% since the end of February, a surge that increases the energy bill for European industrialists and revives global inflation fears. In the industrial sector, other major Paris-listed stocks also experienced sell-offs: Schneider Electric dropped 1.21% and Airbus 1.28%, reflecting a general mistrust towards cyclical stocks at the end of the week. Regarding the financial calendar, Nexans will publish its first-quarter 2026 results on April 28, an event that will provide concrete details on the group's activity in this new economic environment. The general meeting is scheduled for May 21. These dates will be focal points to assess the cable manufacturer's ability to maintain its margins in the face of rising production costs.
