Vallourec Shares Reach Six-Year High, Boosted by Brent at $100
Vallourec is trading at €23.64 this Monday morning, up 2.16% from the last closing. The stock of the seamless steel tube specialist reaches a new six-year high amid strong geopolitical tensions around the Strait of Hormuz.
Impact of US Naval Blockade Against Iran
The announcement this Monday of a US naval blockade against Iran, targeting ships entering and exiting Iranian ports, has caused Brent prices to soar above $100 per barrel, reaching $101.66, an increase of nearly 8%. The Strait of Hormuz, through which a major portion of the world's crude oil passes, is directly targeted by this measure following the failure of negotiations between Washington and Tehran in Islamabad. This geopolitical escalation benefits companies linked to the oil industry: during the session, Shell is up by 1.34% and TotalEnergies by 0.97%. Vallourec, whose business directly depends on the investments of oil and gas companies in exploration and production, fully benefits from this dynamic. The stock reaches €23.64, surpassing its previous six-year record of €23.60, a level not seen since the health crisis of 2020. Over one year, the performance now reaches 61.42%, and the gain over three months is established at 40.05%. The CAC 40, meanwhile, is down by 0.95% in the session, at 8,181.44 points, penalized by uncertainties related to this crisis.
Technical Signals Suggest Caution
Despite the strength of the upward movement, several technical signals call for caution. Vallourec's stock price is currently above the upper boundary of the Bollinger Bands, set at €23.45, which indicates a potential overbought signal. When a stock crosses this limit, it generally indicates that the progression has been rapid compared to its recent volatility, and a return towards the average is not to be ruled out. The RSI (Relative Strength Index), which measures the intensity of the current trend, is at 75, above the conventional overbought threshold of 70. This level confirms that the buying momentum is strong, but it is reaching a tension zone. On the upside, the stock has surpassed its old resistance of €23.15, now breached. The next important date to watch on the fundamental side will be the publication of the first quarter 2026 results, scheduled for May 13.
