SEB share breaks through its support at €57.55 and loses 5% in one week
The small household appliance manufacturer ranks among the notable declines of the SBF 120 on Wednesday, in a context of globally deteriorated European market. The security breaks below its support at €57.55, intensifying a correction that began earlier in the week.
The €57.55 support broken during the session, the MA20 remains above the price
S.E.B. falls 2.71% to €57.50 during the session, dropping back below its support at €57.55, which the security failed to hold. This downward breakthrough occurs as the price also finds itself below the 20-day moving average, which stands at €58.86, representing a gap of 2.31%. The configuration thus closes downward: after having hit this support zone, the security fails to find sufficient buying interest to maintain itself there. The next significant resistance is located at €60.95, representing a reversal path of more than 6% from the current price, while the MA50 at €55.14 constitutes the first intermediate support level in the event of a continued decline.
A decline that is part of a weekly correction of 5% against a backdrop of market tension
Over the week, the security loses 5.04%, erasing part of the quarterly rebound which still reached 9.11% over three months. The CAC 40 declines 1.88% during the session and the SBF 120 retreats 1.81%, in an environment weighed down by tension on long-term rates and geopolitical uncertainties in the Middle East, which keep Brent close to 100 dollars per barrel.
On a valuation basis, according to the consensus of analysts surveyed, the share is trading at around 9.5 times expected earnings for the current fiscal year and 7.3 times those of the following fiscal year, levels that place the security within a range of moderate valuation compared to its recent history. The holding or not of the MA50 at €55.14, the first structural support below current prices, will constitute the next technical reference point to observe.
