Capgemini's Stock Approaches Its Key Support Level at €87.82 After a 3% Drop
The digital services group's stock is declining during the session, amidst a heavily red CAC 40. This slide extends a long-term downward movement and brings the stock back to its most closely watched technical support.
A Retreat That Brings the Stock Back to the €87.82 Support Level
Capgemini's stock is down 3.03% at €90.98 during the session, while the CAC 40 is down 2.24%. The stock is part of a Parisian index shaken by renewed tensions in the Middle East, following US strikes in Iran and Tehran's claimed retaliation in the Gulf. The VIX jumps nearly 20%, indicating a sharp increase in market nervousness. Today's decline extends a significant trend: the stock has lost nearly 34% over the year and more than 10% over the month. It is trading below its three moving averages, with a 22% gap below the MM200 at €116.60, reflecting the depth of the bearish movement. The price returns to the €87.82 support level, already identified at the end of June as a closely monitored technical threshold. The RSI at 50 remains neutral, with no marked oversold configuration despite the repetition of bearish sessions.
Selling Pressure Intensifies Ahead of the Semi-Annual Report
Over thirty days, the cumulative net short position declared on the capital has increased from 0.69% to 2.46%, driven by four funds according to the reviewed declarations. A nearly 1.8-point increase in a month reflects a rise in distrust by some institutional managers, while still remaining at a moderate level relative to the capitalization. This tension sets in as Capgemini enters its quiet period before the publication of the semi-annual accounts, as reminded by a previous session of decline. In terms of valuation, the stock is trading at about 7 times the expected earnings for the current fiscal year according to the consensus of surveyed analysts, with an expected EPS growth of 6.7% from one year to the next. In the United States, its counterpart Accenture is up 3.78%, a divergence that contrasts with previous episodes where Capgemini had followed its counterpart downward. The behavior of the €87.82 support will be the key technical observation for the upcoming sessions.
