Pernod Ricard Shares Climb 2.72% and Continue to Gain Over the Week

Breaking Technical Resistance

The producer of Mumm champagne and Chivas whiskey has surpassed its previous technical resistance at 80.86 euros. This breakthrough comes in a context of sustained rebound, with a 10.24% increase over the week, allowing the stock to reconnect with valuation levels abandoned for several months. However, the current rebound should be viewed in light of the annual trajectory: the group still shows a decline of 18.29% over the past twelve months, reflecting difficulties due to the slowdown in spirits consumption in China and the United States. Over three months, the stock is almost at break-even, with a slight decline of 0.22%. Investors will closely monitor the upcoming publication of revenue and results scheduled for February 19, followed by third-quarter sales expected on April 16, two events that could shed light on the solidity of this recovery.

Technical Aspects of the Recovery

From a technical standpoint, the wine and spirits equipment manufacturer is now well above its 50-day and 200-day moving averages, established at 75.41 euros and 86.78 euros, respectively. This configuration signifies the ongoing turnaround, with the stock having regained 9.05% relative to its 50-session moving average, signaling a renewed interest from operators. The Relative Strength Index (RSI) has reached 70, nearing the overbought zone and suggesting a pronounced bullish momentum in the short term. However, this intensity could lead to a consolidation phase in the upcoming sessions. The monthly volatility of 8.21% remains moderate for a stock of this capitalization, while the negative beta of -0.18 indicates a behavior detached from market fluctuations. Key points to watch include maintaining above the 80 euros threshold and the ability to continue this momentum without major publications until mid-February.