Pernod Ricard Exits Oversold Territory with a 4% Weekly Gain
Pernod Ricard's stock sees a slight decline this Tuesday, March 31, dropping 0.09% to €65.98, following a close at €66.04 the previous day. Despite this, the stock is drawing attention from traders, buoyed by two concurrent signals: a weekly increase surpassing the alert threshold and a gradual exit from the oversold zone in technical analysis. These signals occur in a tense market environment, with a VIX volatility index at 31.05, indicating extreme stress in the financial markets.
Pernod Ricard has shown a 3.68% increase over the past five sessions. This rebound follows a low reached on March 26 at €59.94, a level that precisely matches the current technical support. Since this low point, the stock has not yet overcome the underlying bearish pressure: it is down 15.69% over the month and 29.9% over the year. The nearest resistance is at €86.84, still far from the current price, while the 50-day (€74.74) and 200-day (€83.46) moving averages remain well above the market price, confirming a persistently bearish structure.
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From a technical analysis standpoint, the stock's RSI has returned to 42, after dropping to extreme lows below 15 between March 17 and March 23. This exit from the oversold zone, conventionally set at 30, signals a relaxation of selling pressure, though it does not indicate a trend reversal. The MACD shows a positive differential of 0.08 between the signal line and the main line, suggesting a slight improvement in short-term dynamics. However, both indicators remain in negative territory, consistent with a still deteriorated technical setup. The third-quarter 2025-2026 revenue figures, expected on April 16, could provide further insights into the operational trajectory of the group.
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Context
Period
Period: FY2026
Key reported figures
Revenue: 9 404 millions d'euros
Revenue growth: -14,2 %
EBITDA: 2 575 millions d'euros
Net income: 1 203 millions d'euros
Free cash flow: 1 197 millions d'euros
10 662 millions d'euros
Guidance from the release
Nous anticipons un chiffre d'affaires organique globalement stable sur l'ensemble de l'exercice, dans un environnement contrasté et incertain
Outlook / guidance
Expected revenue: 9 440 millions d'euros
Management commentary: Nous visons un ratio Dette Nette/ EBITDA inférieur à 3x d'ici 2028/29
The information presented in this article is provided for informational purposes only and does not constitute an investment recommendation, an incentive to buy or sell a financial asset, or investment advice. Readers are invited to conduct their own research before making any decision.
Investments in the stock market involve risks, including the risk of capital loss. Past performance of an asset or market is no guarantee of future results. Any investment decision should be made taking into account your personal financial situation, objectives and risk tolerance.