Danone shares rebound after Huel acquisition, RSI nearing oversold territory
The agribusiness group's stock stands out on Tuesday in an almost stable CAC 40, with a rebound that contrasts with the downtrend established over recent weeks. The advance comes shortly after the completion of the acquisition of Huel, a British complete meal brand integrated into accounts since September 1st.
A 1.5% rebound that places Danone among the CAC 40's strongest gainers
Danone gains 1.51% during the session at €64.54, while the CAC 40 declines slightly less than 0.1% and the SBF 120 trades in slightly negative territory. This movement ranks the stock among the strongest risers on the Paris index, in a European market without marked direction. The macro context remains challenging: money markets are fully anticipating a 25 basis point rate hike from the ECB on Thursday, which would bring the deposit rate to 2.5%, and Brent is hovering around $97 due to tensions between the United States and Iran at the Strait of Hormuz.
For Danone, this rebound eases the pressure from the past month, marked by a 5.39% decline over thirty days. Over one year, the stock is still down 14.04%, illustrating an underlying dynamic that remains degraded despite today's session.
Three moving averages above price, but RSI nearing oversold zone
Despite today's rebound, the technical configuration of the stock remains under pressure. The stock is trading below its three moving averages: the 20-day MA at €65.66 (gap of -1.71%), the 50-day MA at €68.92 and the 200-day MA at €69.69, representing 6.36% and 7.39% above current price respectively. Today's rebound is therefore insufficient to break back above the 20-day MA, which constitutes the first technical hurdle to watch.
The RSI at 30 is nearing the oversold threshold, signaling seller exhaustion after several weeks of downward pressure. The support zone identified at €63.58, which corresponds to yesterday's closing price, offers a near-term floor, while resistance at €72.24 remains distant. The Huel acquisition, finalized on September 4th and consolidated since September 1st, represents the latest fundamental catalyst for the group, without today's session providing it with a sustained technical reversal signal yet.
