Teleperformance stock declines nearly 3% and falls below €72
After gaining ground the previous day and approaching its €72 resistance level, Teleperformance reversed course on Tuesday, posting a sharp decline in a European market broadly oriented downward. This move occurs amid heightened tension on global interest rates, with a decision from the U.S. Federal Reserve expected tomorrow.
A marked decline that brings the security back below its short-term moving average
Teleperformance fell 2.82% to €69.56 during the session, after closing at €71.58 the previous day. This decline is particularly notable as it follows a near 3% gain recorded on Monday, when the security was approaching its €72 resistance level. The stock ranks among the largest decliners in the SBF 120, while the index itself fell 0.75% during the session. On the technical indicators side, the price has fallen back below the 20-day moving average at €70.19, with a gap of -0.90%.
The RSI at 60 remained in the neutral-high zone before this decline, which signals that today's selling pressure has not yet translated into a clear technical exhaustion signal. The security nonetheless maintains a wide margin above its 50-day moving average at €64.03 (gap of +8.64%) and its 200-day moving average at €58.60, which underscore the scale of the rebound achieved over three months: +24.93%. The €72 resistance, tested twice in September without being durably breached, remains the key technical threshold to monitor in the coming sessions.
High short positions and tense macro backdrop
Today's decline occurs on a day marked by heightened tension in global financial markets. Markets are pricing in approximately a 90% probability of a 25 basis point rate hike from the Fed tomorrow, in a context where the U.S. 10-year Treasury yield has surpassed the 5% threshold. The VIX, a barometer of market anxiety, surged nearly 13% during the session to 17.86, signaling increased nervousness. These higher rate conditions mechanically weigh on valuations of service stocks, the segment to which Teleperformance belongs.
On this latter point, the stock is trading at approximately 5.1 times expected earnings for the current fiscal year according to the consensus of surveyed analysts, with earnings per share growth projected at +4.5% year-over-year. Furthermore, according to available declarations, seven funds cumulate 7.99% of the capital sold short, down 0.71 percentage points over thirty days (compared to 8.70% a month ago). This level remains elevated and reflects an ongoing structural bearish positioning on the stock, although the trend over the past month is moving in the direction of progressive easing. The support level at €64.96 constitutes the next technical floor in case of an extension of the decline.
