Danone shares rise 1.5% and gain 17.5% over one month
The dairy, water and infant nutrition group posts a clear gain in a well-oriented Parisian market. It extends a rebound underway for several weeks, which has allowed it to recover almost all of its technical benchmarks.
A rebound that places the share price well above its moving averages
Danone gains 1.53% to €69.10 intraday, while the CAC 40 advances 0.61%. This increase makes it one of the strongest performers in the index, whose value occupies the leading pack. It extends a very favorable month: +17.7% over thirty days, compared with only +2.7% over three months, which shows how recent the rebound is after a period of decline.
The share price stands 6.8% above its MA20 and 11.2% above its MA50, but only 3.8% above the MA200 at €66.59. It has also broken above the highest level of the last thirty sessions at €68.56, a threshold that now acts as support. This progression had begun as early as October 28, following sales up 4% in the third quarter.
RSI at 72 and resistance at €74.40: the next test for the stock
The RSI at 72 places the stock in overbought territory, a signal that describes the magnitude of the recent rise without predicting what comes next. This strength contrasts with a 12.5% decline over one year, which recalls that the current movement follows a low point.
The next resistance lies at €74.40, about 7.7% above the day's price, while the support at €68.56 has just been reclaimed on the upside.
The stock had already fallen more than 2% on November 6 before rebounding. In terms of context, the French 10-year OAT stands at 4.76% according to the Banque de France data of November 12, with a spread of 1.47 points over the Bund.
In this environment, the distance to the €68.56 support and the €74.40 resistance delineate the zone in which the stock is trading.
