Arkema stock slips below €54 and tests a key support level
The specialty chemicals company is resuming a downward trend mid-morning, in a Paris market experiencing sharp declines. The stock is losing ground following the rebound observed a week ago and is approaching a closely monitored technical threshold.
A price at €54, below its three moving averages
The Arkema stock is down 2.35% at €54.00, a level that coincides with its support, while the CAC 40 is declining 1.53% and the SBF 120 1.49%. The stock remains below its 20-day MA (gap of -2.07%), its 50-day MA (-5.73%) and its 200-day MA (-6.64%), a sign of a trend that has not regained momentum. The RSI at 36 reflects the progressive exhaustion of buyers following a 2.44% decline over the week. In this movement, Arkema ranks among the weakest in the index, far from the top occupied by ID Logistics.
Arkema had nonetheless gained 2.5% on October 14, among the strongest gains in the SBF 120, following a target adjustment by an American broker. This rebound has been erased today. Over three months, the stock is down only 0.83%, which shows that this week's decline remains contained at this stage.
Brent at $112 and OAT at 5% weigh on the Paris session
The Paris session is playing out against a backdrop of tension over French debt: the 10-year OAT briefly exceeded 5% on October 21, and the spread with the Bund reached 1.58 basis points, its highest level since 2011. Brent, meanwhile, is rising 3% to $112.13 per barrel, supported by uncertainties around the Strait of Hormuz. For Arkema, which historically moves in line with China's leading indicator, this measure reflects industrial demand, which partly depends on its order book.
On the activity side, the group inaugurated the extension of its Shanghai R&D center on October 15, with China being its second market. In second quarter results published on July 30, EBITDA rose 7.4% and annual guidance was confirmed. The €54 support is being tested during the session, and resistance is found at €58.30.
