Crédit Agricole stock drops 14% in one month, RSI collapsed to 19
The green bank is losing ground in a declining Paris market, while French debt remains at the forefront of concerns. The stock is extending a difficult month, with a relative strength indicator that has fallen very low.
A stock trading below its three moving averages, with RSI fallen to 19.64
Crédit Agricole stock is down 1.11% to €15.13 during the session, compared to -0.65% for the CAC 40. It ranks at the bottom of the Paris index, far behind Sanofi, the only stock showing marked progress. The decline is part of a longer slide: the stock has lost 13.87% over one month, excluding dividend detachment. The price is below the 20-day moving average (gap of -7.74%), the 50-day moving average (-13.75%) and the 200-day moving average (-11.05%).
The stock has been trading ex-dividend since October 13, following the detachment of a dividend of €0.570. The performances mentioned above are calculated taking into account this coupon, which does not explain today's session.
French debt and rates: the banking sector in a tense market
The session is taking place in a context of tensions surrounding French debt. The ten-year OAT yield was 4.85% on October 19, or 1.42 percentage points above the Bund, and Moody's is set to re-examine France's rating on October 23. Crédit Agricole's stock has historically evolved inversely to the OAT-Bund spread, over one month, since 2014. In terms of valuation, the stock trades at approximately 6.6 times the current year's earnings, according to the consensus of analysts surveyed.
Regarding group news, Sofinco presented Pure, a renewable credit card. The group also detailed on October 19 emergency credit at 2.5% for merchants affected by the deterioration on October 17. The next technical level remains the €15.30 support that the stock has just broken.
