Engie stock breaks through its support level at €24.10 amid Middle East tensions
The French energy company closes Wednesday, September 2nd trading session at the bottom of the CAC 40 index, penalized by a bearish breach of its support level during the session. The decline is part of a deteriorated monthly trend, as military escalation between Iran and the United States in the Middle East revives tensions in energy markets.
Engie breaks through its €24.10 support level and intensifies its monthly decline of nearly 12%
Engie falls 2.01% to €23.91 at close, after breaking through its €24.10 support level during the session. The share remains well below this threshold at the end of the day, extending a decline already underway last week when the security had broken a first level at €24.96. Over one month, the loss now reaches 11.8%, and over the week 5.61%.
The price is trading well below its three moving averages: the 20-day MA at €25.54, the 50-day MA at €26.43 and the 200-day MA at €25.90, all positioned between 6% and close to 10% above the latest price. The RSI at 35 signals a configuration close to oversold without formally reaching it, reflecting persistent selling pressure over several weeks. The next significant resistance is set at €27.79, representing a gap of more than 16% from the current price.
Iran-U.S. tensions in the Middle East fuel uncertainty in the energy sector
On Wednesday, September 2nd, Iran launched a military strike against several American installations in Jordan, Iraq and Bahrain, marking a new direct escalation between Tehran and Washington. Donald Trump simultaneously publicly discussed the strategic role of the Strait of Hormuz, a crucial transit route for global oil. This tense geopolitical context weighs on the entire energy sector in Europe, with the CAC 40 itself closing slightly down 0.26% and the DAX down 0.34%.
Engie, whose activities cover large-scale energy production and distribution, is exposed to indirect effects of increased volatility in oil and gas markets. Upon publication of H1 2026 results (July 31, 2026), the group had raised its guidance for recurring net income attributable to the Group for the fiscal year, a sign of still positive operational momentum. The next evolution of the geopolitical situation in the Middle East and its repercussions on energy prices will remain decisive for the direction of the share in the coming sessions.
