Orange Shares Drop 2.5% and Rank Last in the CAC 40
The telecom operator opens significantly in the red this Wednesday, trailing the CAC 40. The stock continues the consolidation movement that began after the multi-year high in mid-May and loses ground under a technical zone watched for several sessions.
Orange at the Bottom of the CAC 40, Below the Technical Support of €17.44
Orange shares drop 2.71% to €17.03 at the opening, marking the lowest point of the CAC 40 which remains almost stable. The movement extends from the previous session, during which the stock had already broken its support at €17.44 during the day, falling to €17.39, before closing above it. This morning, the break is confirmed. Over a week, the decline reaches 3.54%, and 6.53% over a month, while the annual performance remains solidly positive at over 33%.
The stock is now clearly below its short moving averages, the MM20 (€17.89) and the MM50 (€17.90) both about 4.8% above the current price. The MM200 at €15.71 remains just over 8% below the current level, which keeps the underlying trend intact. The RSI at 42 indicates the short-term momentum is waning without entering an oversold zone.
Restructuring of Hybrids and Busy Macroeconomic Calendar This Wednesday
On the corporate front, the group announced on Monday its intention to launch a new strain of super-subordinated perpetual bonds, accompanied by a buyback offer for two existing hybrid strains. The operation aims to restructure the operator's portfolio of hybrid instruments, a topic already cited as a trigger for Tuesday's decline (hybrid bond issuance). The session also takes place in a busy macroeconomic environment: the FOMC concludes its meeting this Wednesday, the first chaired by Kevin Warsh, with a status quo on rates largely anticipated by the markets and a focus on the new 'dot plot'.
Meanwhile, the G7 summit in Évian continues, against the backdrop of the prospect of a gradual reopening of the Strait of Hormuz. Technically, attention is focused on the reconquest of the €17.44 threshold, now fallen back into resistance.
