Crédit Agricole share breaks out of its one-year range and loses 2%
The green bank declines further in mid-morning trading, as the CAC 40 shows a marked downward trend. The security exits the range it had maintained for nearly a year, while tensions over French sovereign rates intensify.
A security lacking support below its price, below all its moving averages
The security falls 1.94% to 14.95 € during the session, following the previous close at 15.24 €. This level, which now becomes the nearest resistance, had been the price of the previous session. The price breaks through its lowest point of the last 250 sessions: no support appears below it.
It is situated below its three moving averages, 6.8% below the 20-day MA and approximately 12% below the 200-day MA. Over one month, the decline reaches 15.1% (dividend reinvested), while a payment of 0.57 € was detached on October 13. In the CAC 40, the security ranks among the index's steepest declines, which loses 1.42% at the same time.
French debt and group matters: the backdrop of the session
The session unfolds under interest rate pressure: the 10-year OAT briefly exceeded 5% on October 21, a first since 2002, and the spread with the Bund reaches 1.58 points according to the Banque de France and the Bundesbank. Historically, Crédit Agricole's price evolves inversely to this spread, a statistical observation and not a forecast. Moody's is to re-examine France's rating on Friday, October 23. On the group side, the partnership with Mistral was announced on October 20.
The group also set its Senior Preferred 2036 issuance at 165.7 million euros, published on October 21. According to the consensus of surveyed analysts, the share trades at approximately 6.5 times the expected earnings for the current fiscal year. The level to watch remains the threshold of 15.24 €, the former close now situated above the current price.
