Safran's Stock Soars Over 4% Breaking the €306 Resistance
The aerospace engine manufacturer continues its upward trajectory, ranking among the top gainers on the CAC 40. The geopolitical relaxation observed this Monday benefits the entire sector, as the stock extends an already well-established bullish movement over the month.
The Stock Breaks the €306.10 Resistance and Moves Away from All Its Moving Averages
Safran's stock is up 4.25% at €319.10 mid-morning, marking one of the strongest increases on the CAC 40 while the Paris index is up by 1.07%. The stock has broken through the €306.10 resistance, identified as a technical lock, and has increased its monthly gain to 12.68%. The price is significantly above its three moving averages, with a gap of 8.72% on the MM20 (€293.51), 9.79% on the MM50 (€290.65), and 6.30% on the MM200 (€300.18). The RSI at 59 indicates a bullish momentum without yet signaling overheating, which leaves room before entering the overbought zone. The performance over one year now reaches 26%.
US-Iran Agreement on Hormuz and Brent's Decline Revitalize the Entire Aerospace Sector
Today's rebound follows the framework agreement announced between Washington and Tehran, extending the 60-day ceasefire and planning the gradual reopening of the Strait of Hormuz. Brent has fallen about 4% to $83.6 a barrel, a relaxation that eases the pressure on the costs of airlines and, by extension, on the demand for engine manufacturers. Airbus is up 3.65% in the same movement. This sectoral configuration reverses that of June 8, when the surge in the barrel due to tensions in the Middle East had caused the stock to drop by 2% at the opening. Industrially, the group confirmed in early June a significant ramp-up of its AASM Hammer air-to-ground armament, with a production target increased to 1,400 units in 2026 from 200 in 2022. The next technical level to watch: the €320 zone, already tested as a recent high.
