Danone shares fall more than 2%, among the laggards of the CAC 40
The dairy, water and infant nutrition group is losing ground in a sharply lower Paris market, after several weeks of rebound. The decline comes as the stock had just reclaimed several technical benchmarks.
A decline significantly steeper than the CAC 40 after a month of gains
Danone is trading at €67.06 intraday, down 2.19% from the previous session (€68.56). The benchmark index loses 1.43% at the same time, so the stock significantly underperforms and ranks in the lower part of the CAC 40 standings. This decline contrasts with the recent momentum, as the stock still gains 16.1% over one month and 4.16% over seven days.
The stock had crossed €66.06 last Wednesday, with an RSI in overbought territory. Today's pullback thus brings the price back toward resistance at €68.56, the level of the previous close. Over one year, the stock remains down 13.02%.
The price remains above its three moving averages, by 0.75% to 8.5%
Despite the session, Danone remains above its MA20 (€63.01, a gap of 6.43%), its MA50 (€61.80, a gap of 8.51%) and its MA200 (€66.56, a gap of 0.75%). The MA200 is the nearest threshold: the price recently recovered it and is now only 0.75% away.
The RSI at 67 indicates a stock still firm after the monthly rise, without being markedly overbought. The session takes place against a backdrop of market tension, with the VIX jumping to 26.44 following the correction in technology stocks on Wall Street. The next level to watch is therefore the MA200, at €66.56.
