Dassault Aviation Shares Drop 2.5% Following Defense Sector Trends
The Saint-Cloud aircraft manufacturer falls as the market closes, in a Parisian market heavily oriented downwards amid new tensions in the Middle East. The decline is part of a broader movement in French defense stocks as volatility sharply increases in European markets. The stock is testing its technical benchmarks after a bullish week.
A Decline Bringing Dassault Aviation Back to Its 20-Day Moving Average
Dassault Aviation shares lose 2.37% to €296.60 during the session, after closing at €303.80 the previous day. The decline is part of a difficult session for the entire sector, with Thales down 1.94% and Safran dropping over 4%, while the CAC 40 loses nearly 2% and the SBF 120 drops 2.01%. The American volatility index (VIX) climbs 11.16% to 17.93, a movement consistent with the new military escalation between Washington and Tehran and the Iranian claims of strikes against American facilities in Kuwait and Bahrain.
From a chartist perspective, the stock returns to contact its MM20 (€297.68), touching it within 0.36%, while remaining slightly above its MM50 (€294.24) and below its MM200 (€300.52, a gap of -1.30%). The RSI at 57 remains neutral, with no sign of excess. The next bearish benchmark remains the support at €283.60, while the resistance at €311.20 marks the upper limit of the recent channel.
The Week's Rally Fades After Attacking the €309 Resistance
Despite today's downturn, the weekly performance remains positive at +3.27%, driven by last week's bullish sequence when the stock had attacked its resistance at €309 by gaining nearly 5%. Over three months, the balance remains negative at -10.01%, and the stock shows an almost null performance over a year (-0.13%). The geopolitical context remains the main factor of the session: the United States has conducted strikes against Iran and Donald Trump has declared from Ankara that the ceasefire with Tehran is over, according to him, reducing short-term diplomatic visibility.
This escalation weighs on airlines and civil aeronautics, while pure defense stocks are mixed after their rally in recent weeks. The holding of the MM20 at €297.68 and the support at €283.60 are the next concrete technical benchmarks to follow the stock's dynamics.
