Crédit Agricole stock rebounds 1.5%, among the most sought-after CAC 40 securities
The green bank rebounds at the end of the week, regaining ground after a difficult month. The movement occurs in a nearly stable CAC 40, which gives the security particular relief compared to the broader Paris index.
A session rebound that only partially offsets the month's decline
Crédit Agricole gains 1.42% to €18.20 in trading, claiming one of the best performances on the CAC 40 while the index trades nearly flat. This rebound somewhat improves the monthly balance, weighed down by a 4.66% decline over one month, without fully erasing it. Over three months, however, the security maintains a gain of 3.73%, which demonstrates an intact positive quarterly momentum.
The interest rate environment remains a parameter to monitor for banks: the 3-month Euribor stands at 2.51% since August, 0.48 percentage points higher than a year ago, and markets are pricing in an increased probability of another Fed tightening in October, against the backdrop of solid U.S. PMI and a strong dollar. Regarding its share buyback program, Crédit Agricole acquired €664 million of its own shares over twelve months, representing 1.2% of its market capitalization according to the latest disclosure from September 21.
An RSI in oversold territory while the price remains below its two first moving averages
Despite today's rebound, the technical configuration remains under pressure. The price at €18.20 remains below the 20-day MA at €18.43 (a gap of -1.28%) and the 50-day MA at €18.81 (a gap of -3.27%), reflecting a short and medium-term trend still oriented downward. Only the 200-day MA at €17.68 remains below the price, offering a cushion of 2.91%.
The RSI at 35 is approaching the oversold threshold of 30, signaling an exhaustion of selling pressure over the week, even though the 2.2% decline over seven days illustrates that the decline remains recent. According to the consensus of analysts tracked, the security trades at approximately 7.9 times the expected earnings for the current fiscal year and 7.3 times those for the following fiscal year, with earnings per share growth anticipated at +8.2%. Resistance at €20.20 constitutes the next level to break through to confirm a turnaround, while support at €17.94, at the level of the previous close, defines the floor not to be breached.
