TotalEnergies Shares Drop 2.23% Following Oil Price Decline
The shares of the oil giant ended Friday's session at €50.00, down 2.23% from the previous day's €51.14. This decline is part of a marked negative trend, with a loss of nearly 2% over the past week and a decrease of more than 6% over three months. Over one year, the performance reached -19.33%, in stark contrast to the CAC 40's gain of 4.73% over the same period. Trading volumes remained moderate, accounting for 0.24% of the capital, indicating relatively calm activity despite the drop in prices.
Significant Selling Pressure Marks Friday's Session
The session on Friday, October 10, was characterized by significant selling pressure across the European energy sector. TotalEnergies exacerbated the CAC 40's downturn, which itself fell 1.53% to close at 7,918 points. The symbolic crossing of the €50 threshold occurs in a context of heightened tensions in the global oil market. The stock is now trading close to its technical support at €50.87, a level that could act as a floor in case of a new wave of sales. Conversely, the nearest resistance is at €54.25, which is more than 8% above the current price. This decline in the stock is largely due to the collapse of oil prices observed this Friday. Brent crude fell to around $63 to $64, down 2 to 3% for the day, following the announcement of a ceasefire agreement between Israel and Hamas. This geopolitical easing in the Middle East led to a significant reduction in the risk premium embedded in crude prices for several months, weighing mechanically on the valuations of oil companies. Investors now anticipate a better-supplied market and reduced tensions on strategic supply routes.
Technical Pressure on the Stock
Technically, the stock has been under pressure for several weeks. It is trading below its 50-day moving average at €52.55, indicating a short-term bearish trend. More concerning, it also remains below its 200-day moving average at €54.04, generally interpreted as a sign of structural weakness in the momentum. The Bollinger Bands, currently framing the prices between €50.20 and €53.86, show that the stock is navigating near the lower boundary, which could signal an oversold phase or at least sustained selling pressure. Momentum indicators confirm this cautious reading. The Relative Strength Index (RSI) stands at 47, a neutral level that does not provide a clear signal for immediate buying or selling. The MACD, with a main line at -0.55 and a signal line at -0.45, remains in negative territory, suggesting that bearish momentum remains dominant in the short term. The Chaikin Money Flow, measuring incoming and outgoing cash flows, displays a negative value of -0.15, confirming an imbalance in favor of sellers. Finally, with a beta of only 0.09, TotalEnergies shows very low sensitivity to movements in the CAC 40, which may limit short-term fluctuations but does not protect against specific sector factors such as changes in crude prices.
