Nexans Shares Near Key Support at 116.70 Euros, RSI Enters Oversold Territory

Widespread Downturn in Global Markets

Nexans' decline is part of a difficult session for the entire European stock market. The CAC 40 is down 2.03% during the session, while the DAX has fallen by 1.59% and the FTSE 100 by 1.42%. In Asia, the downturn was even more pronounced: the Nikkei 225 closed with a dive of 5.20%, and the Hang Seng finished down by 1.35%. This widespread market skepticism coincides with increased nervousness, highlighted by a significant rise in the VIX, the benchmark volatility index, which jumped 12.29% in the last available session to settle at 23.75. For Nexans, this worsening market climate exacerbates an already ongoing downward trend: the stock has declined by 11.24% over three months, despite a still positive annual performance of 22.79%. The upcoming financial calendar milestones, with the first quarter results scheduled for release on April 28 and the general meeting planned for May 21, will be important markers for the stock.

Technical Situation Demands Caution

Technically, Nexans' situation calls for vigilance. The Relative Strength Index (RSI), which measures the speed and magnitude of price movements, stands at 29, below the threshold of 30 generally considered as the border of the oversold zone. This level indicates intense and prolonged selling pressure. At the same time, the price of 116.90 euros is approaching the support threshold identified at 116.70 euros. A sustained move below this zone could pave the way for further declines, especially since the stock is already significantly below its 50-day (128.42 euros) and 200-day (122.78 euros) moving averages. This configuration, where prices are below both trend references, signals a weakening of the bullish momentum that prevailed over the annual horizon. The nearest resistance is located at 142.20 euros, representing a gap of more than 21% from the current level.