Pernod Ricard stock breaks through 60 € and signs a multi-year low
Pernod Ricard is settling in last place on the CAC 40 this Thursday, unable to find a floor since the publication of its annual results at the end of August. The stock is now trading at levels not seen in several years, amid persistent pressure on French spirits exporters.
A CAC 40 laggard sinking below its three moving averages
Pernod Ricard is down 1.87% during the session at 58.92 €, deepening a monthly decline of 16.21% and a yearly fall of 37.56%. The stock occupies last place in the CAC 40, in an index that remains virtually stable at midday assessment. The selling momentum is all the more visible as the MA20 and MA50 are both located around 65.65 €, more than 10% above the current price, while the MA200 at 69.21 € is about 15% higher.
This distance from the moving averages reflects an underlying movement that has been ongoing for several weeks, with no sign of stabilization. Rémy Cointreau, the other spirits value on the Paris market available for comparison, is down 0.98% during the session, a sign that pressure is affecting more broadly the segment of French spirits exporters, caught in difficult conditions (cognac exports declining 10.9% in value in 2024 according to FEVS).
An RSI near oversold and a 60 € support already broken
The RSI stands at 31, on the edge of the oversold zone (below 30), without triggering a technical rebound since the decline of September 7. More significantly: the support threshold at 60.04 €, which corresponds to the previous day's closing price, has been broken during the session, leaving the stock without an identified floor in the short term. The next major resistance, at 70.32 €, appears very distant in current conditions, with a gap of nearly 19% compared to the current price.
In this context, the annual results published on August 27, marked by an organic revenue decline of 3.9%, continue to weigh on the stock's perception. The rate increase anticipated by the ECB during its meeting today could further reinforce pressure on consumer stocks with a defensive profile. The breakdown of the 60 € support remains the key technical fact of the day to assess the extent of the decline.
