Safran shares among the strongest declines of the CAC 40 this Tuesday
Safran is among the marked declines of the CAC 40 this Tuesday, in a Paris market oriented downwards. The pullback occurs following a historic peak recorded in early August, bringing the stock to a level clearly below its short and medium-term moving averages.
A decline of 2% that widens the gap to the 20 and 50-day moving averages
Safran loses 2.08% during the session and quotes at €330.00, while the day before the stock closed at €337. This movement occurs in an unfavorable market context: the CAC 40 declines 0.5% during the session, but the stock's decline is almost four times greater than that of the index. The aerospace engine manufacturer thus finds itself among the strongest declines of the CAC 40. Over the past week, the loss reaches 2.91%, reflecting a short-term bearish momentum that has been in place since the historic record of €361.90 recorded in early August.
The price now stands 6.30% below the MA20 at €352.17 and 3.88% below the MA50 at €343.33, two levels that exert downward pressure on any attempt to rebound. Only the MA200 at €312.72 remains below the price, with a cushion of 5.53%. The RSI at 42 is moving in neutral territory, without signaling immediate selling exhaustion, which leaves the short-term bearish configuration intact.
A support at €321.40 as a reference in a context of rising VIX
The VIX advances 10.6% during the session to reach 15.96, signaling increased nervousness in the markets, without however reaching extreme stress levels. This backdrop contributes to weighing on cyclical stocks in the European market, while the DAX declines 0.82% and the SBF 120 falls 0.48% during the session. In this context, the support at €321.40 constitutes the closest technical reference for the stock: the gap between the current price and this level is less than 3%, which is a limited margin if selling pressure were to intensify.
The resistance at €363.60 sits 10.2% above the current price, materializing the extent of the path to travel to return to August's highs. Over three months, performance remains positive at nearly 8%, recalling that analysts' opinion has been built on a solid upward trajectory since spring. The support at €321.40 remains the reference level to watch to gauge the solidity of the underlying trend.
