Nexans Shares Drop 3.5% and Threaten Key Support at €130
The French cable manufacturer drops in mid-morning trading, following a similarly poor performance by the CAC 40. The stock is approaching a closely watched technical threshold and is among the biggest losers in the SBF 120, in a challenging July for the stock.
A Decline That Brings the Stock Closer to Its €130.50 Support
Nexans shares fall 3.31% to €131.50 during the session, down from €136 the previous day. The stock is among the largest declines in the SBF 120, while the broader index is down 0.43%. The decline brings the monthly drop to 11.33%, although the annual performance remains positive at 16.89%. Graphically, the price is testing its support at €130.50, a break of which could lead to a continuation of the correction that began in mid-June. The stock is now trading below its three moving averages: 7.54% below the MM20 (€142.22), 13.18% below the MM50 (€151.46), and slightly below the MM200 (€132.99), indicating a clear deterioration in short and medium-term dynamics. The RSI at 39 remains in the neutral zone, with no marked oversold signal despite the slide.
A Summer Slide Following a Strategic Portfolio Rotation
Today's movement extends a bearish sequence already well established, marked at the beginning of July by the break of the €137.80 support and then a new threshold around €130.50, now retested. Fundamentally, the company has completed several significant operations in recent weeks: the sale of Autoelectric to Motherson for €207 million, which completes the divestment from non-electrification related activities, and a supply agreement with Hydro for 85,000 tonnes of low-carbon aluminum over five years. These elements have not been sufficient to stem the correction: the stock has erased more than 11% in one month and is now trading below its MM200 (€132.99), the last medium-term support before the €130.50 threshold. The behavior of this level is the immediate point of observation for the continuation of the sequence.
