RENAULT Shares Rise by 2.85% at Midday
After a sharp decline of over 17% last Wednesday, the automotive manufacturer's stock is regaining ground this Monday, November 3. RENAULT shares are trading at €34.66 at midday, benefiting particularly from a strategic announcement in Brazil involving the Chinese group Geely. This rebound occurs in a slightly positive stock market environment, with the CAC 40 index gaining 0.27% in the same session.
Current Session Overview
The stock has gained 2.85% compared to last Friday's close (€33.7), confirming a beginning of stabilization after the turbulence at the end of the previous week. However, trading remains very discreet with only 0.1% of the capital traded, suggesting a certain caution among investors. Over a week, the progress is limited to 0.84%, reflecting the volatility that has characterized the stock for several days. The outlook improves slightly over a longer time frame. Over three months, RENAULT has shown a positive performance of 7.67%, indicating a gradual consolidation despite negative announcements in October. However, on an annual basis, the stock is down by 15.63%, a decline that marks a significant gap with the CAC 40's performance over the same period (+9.91%). This underperformance highlights the ongoing challenges faced by the French automotive group since the beginning of the year, marked especially by a revision of margin targets and a deterioration of the European automotive market.
Strategic Partnership in Brazil
The improvement observed this Monday is partly based on positive news announced this morning. RENAULT and the Chinese manufacturer Geely have finalized an enhancement of their strategic cooperation in Brazil. Geely has entered the capital of the French group's Brazilian subsidiary by acquiring 26.4% of the shares, although the exact amount of this transaction has not been disclosed. This agreement reflects a desire to structure the French manufacturer's presence in Latin America through strategic partnerships, a welcome signal of managerial clarity after recent turbulence. This context contrasts with the negative announcements last Friday, when RENAULT revised its forecasts for the current year downwards. The operating margin is now targeted at 6.5% of revenue, compared to a previous target of at least 7%. Free cash flow is expected to be between €1 and €1.5 billion, well below the anticipated €2 to €3 billion. These revisions reflect, in particular, a deterioration in volumes in June and a disappointing performance in the commercial vehicle segment in Europe.
Technical Analysis
Technically, the stock consolidates its position in an intermediate zone. The stock is trading close to its 50-day moving average, set at €34.33, while remaining distant from its 200-day average positioned at €41.27. The RSI indicator, set at 45, remains in a zone of neutrality without extreme signals. The stochastic shows a buy signal, while the MACD persists in slightly negative territory (MACD line at -0.31, signal line at -0.20). The Bollinger Bands frame the stock between €32.87 and €36.01, defining a tight trading corridor. The major support threshold is established at €33.09, while resistance is positioned at €36.16. The moderate 1-month volatility (7.85%) suggests stabilized market conditions after the significant movements recorded during the previous week.
