Vallourec Shares: Price Crosses €19.50 Driven by Strategic Partnership in Hydrogen

Strategic Move into Clean Energy Market

Vallourec is accelerating its positioning in the clean energy market. On Monday, February 17, the group formalized the signing of a memorandum of understanding with Baker Hughes aimed at jointly developing green hydrogen storage solutions. This collaboration includes integrating Vallourec's Delphy technology, designed for underground storage, with the compression systems of the American oilfield services giant. This type of partnership illustrates the diversification strategy pursued by the specialist in seamless steel tubes, historically focused on the oil and gas industry. By partnering with a leading player like Baker Hughes, Vallourec aims to capture the expected growth of the hydrogen market, considered a cornerstone of the energy transition. The announcement has accompanied the stock's rise, which has gained 3.47% over the past seven days.

Technical Analysis of Stock Performance

Graphically, Vallourec's share price is now well above its 50-day moving average, set at €16.93, confirming the medium-term bullish trend. The gap of more than €2.50 between the current price and this average reflects the magnitude of the movement initiated since the end of November. The RSI, an indicator that measures the speed and magnitude of price changes, stands at 69, very close to the conventionally set overbought threshold of 70. This level suggests that buying pressure remains strong, but that the stock is approaching a zone where profit-taking becomes statistically more frequent. Notably, the share price today has crossed the former resistance of €19.01, which could now serve as a new technical floor in case of a pullback.