Vallourec Shares Drop 2.69% at Midday Despite Long-Term Upward Trend
On Monday, March 23, Vallourec shares fell by 2.69% to 19.51 euros at midday in a session marked by high volatility on European markets. Despite a weekly gain of over 4%, the stock faced a setback as the CAC 40 experienced turbulence due to tensions between the United States and Iran around the Strait of Hormuz.
Vallourec Shares Decline Amid Market Turbulence
Vallourec's stock dropped 2.69% this Monday at mid-session, falling to 19.51 euros from 20.05 euros at last Friday's close. This decline comes in a particularly turbulent market context: the CAC 40, during the session, now up by 0.61% at 7,712 points, had dropped by more than 2% in the morning due to fears of a potential military conflict between Washington and Tehran. The announcement of a postponement of U.S. strikes and discussions described as 'very successful' by Donald Trump allowed indices to recover, but the rebound did not benefit all energy-related stocks. In this sector, Shell and TotalEnergies are down respectively by 3.26% and 2.73% in the session. The prospect of de-escalation around the Strait of Hormuz, a critical point for global oil transit, temporarily reduces the risk premium on crude prices, impacting parapetroleum companies like Vallourec, a specialist in steel tubes for the oil and gas industry. The next key date for the group will be the publication of its first-quarter 2026 results, scheduled for May 13.
Recent Performance of Vallourec Remains Strong Despite Monday's Correction
Despite Monday's correction, Vallourec's recent trajectory remains solid. The stock has gained 25.87% over three months and 8.72% over a year. The price is currently above its 50-day moving average, which is at 18.57 euros, significantly higher than the 200-day moving average of 16.57 euros, indicating a still intact medium and long-term upward trend. The most relevant support level is at 18.25 euros, approximately 6.5% below the current price. Conversely, the resistance identified at 20.05 euros — precisely corresponding to last Friday's closing price — has not been breached and now poses an immediate obstacle. The RSI, at 58, remains in a neutral zone, with no signs of overheating or overselling, indicating that the day's decline does not, at this stage, challenge the momentum established since the beginning of the year. Monthly volatility remains contained at 7.06, and the very low beta of 0.05 confirms a historically low correlation with overall market fluctuations.
