Capgemini stock stalls below €111, trailing the CAC 40
In an almost stable CAC 40, Capgemini is dragging the index down and finds itself at the bottom of the benchmark this Friday. The decline brings the stock back into contact with its twenty-day moving average, against the backdrop of a VIX in sharp decline at 14, signaling a globally serene market.
In contact with the MA20, the stock under pressure from resistance at €111.40
Capgemini is down 1.73% in trading at €108.10, after closing at €110 the previous day. The price is sticking to the twenty-day moving average, set at €108.28, with an almost zero difference of -0.17%: the upward momentum of recent weeks is stalling at this level. In comparison, the MA50 at €99.75 remains well below the price (gap of +8.37%), testifying to a solid rebound over three months (+10.6%), but the MA200 at €111.59 weighs as resistance above the current price, only 3.1% away.
The RSI at 49 indicates a neutral configuration, without marked upward or downward pressure. The resistance at €111.40, very close to the MA200, forms a coherent technical ceiling that the stock has not yet managed to break through, while support at €86.06 remains far below.
Short positions in sharp decline, a stock valued at less than nine times expected earnings
The analysts' views on the stock remain to be monitored in this consolidation context, particularly as net short positions have declined significantly in recent weeks. According to the statements consulted, three funds now hold 1.78% of capital sold short, compared to 3.05% thirty days ago, representing a reduction of 1.27 percentage points. This rapid unwinding of bearish bets deserves to be noted without being overestimated: it reflects a lower bearish conviction among these institutional players, not necessarily a buy signal.
Furthermore, on the basis of expected earnings per share, the stock trades at approximately 8.5 times current fiscal year earnings and 7.9 times the following fiscal year's earnings according to the consensus of surveyed analysts, with expected earnings per share growth of +8.2% from one fiscal year to the next. The next threshold to watch remains the €111.40-€111.59 zone, which concentrates graphical resistance and MA200.
