Safran's Stock Rises 2% After Hitting Key Technical Support
Safran's stock increased by 2% this Tuesday, March 31st, reaching 279.90 euros at midday, after closing at its support threshold of 274.40 euros the previous day. This rebound occurs amid heightened geopolitical tensions in the Middle East and as the CAC 40 gains 0.70% during the session. The publication of the first quarter 2026 results, scheduled for April 23, will be the next major event for the aerospace and defense group.
Technical Rebound Amidst Ongoing Downtrend
Safran regained 2% this Tuesday after precisely hitting its support threshold at 274.40 euros at Monday's close. However, the stock is still down 2.58% over the past seven days and 5.88% over three months, significantly underperforming its 50-day (313.33 euros) and 200-day (297.38 euros) moving averages, indicating a still intact medium-term downtrend. The RSI, an indicator measuring the momentum of a stock on a scale from 0 to 100, is at 29, indicating an oversold zone. This technical level reflects an excess of selling pressure and can sometimes precede a more sustained rebound, although it is not a reliable signal on its own. The price is also near the lower Bollinger band (268.48 euros), confirming a significant deviation from recent dynamics. Meanwhile, in the rest of the sector, Airbus is up 0.79% in the session while Schneider Electric is up 0.59%, indicating a fairly generalized upward movement in industrial stocks listed in Paris.
Geopolitical Context Impacts Global Financial Markets
The geopolitical context has been weighing on global financial markets since the beginning of the week. The Houthis, supported by Iran, entering the war caused a surge in Brent crude to over 115 dollars on Monday, marking an increase of nearly 10% in a single session. The deployment of American military reinforcements in the area fuels fears of a regional conflict expansion. The VIX, a barometer of volatility on American markets, stood at 31.05 points at last Friday's close, indicating extreme stress. For Safran, whose activities include both aeronautical propulsion and defense equipment, this regional instability could have mixed effects: the increase in kerosene costs traditionally weighs on its airline customers, while defense budgets tend to be increased in such scenarios. The group will present its quarterly accounts on April 23, followed by the annual general meeting scheduled for May 21. These two dates will allow for an assessment of the concrete impact of the new macro-economic environment on the group's business dynamics and margins.
