Eramet stock breaks through support at €43.12 and plunges to recent lows
Four days after the resumption of the Weda Bay nickel mine in Indonesia, the mining group's shares come under heavy selling pressure in this first trading session of the week. The movement occurs in a context of an already weakened Paris market, with the CAC 40 and SBF 120 falling 0.78% and 0.84% respectively during the session.
Eramet breaks through its support at €43.12 and accumulates losses over three months
During trading on Monday, Eramet loses 4.69% to €43.10, after closing at €45.22 on Friday. The share has broken through its support level at €43.12 on the downside and remains below it, with the latest price at €43.08. This breakthrough is notable: this threshold represented the last technical lock before a price zone without an identifiable recent floor. The correction is part of a pronounced downtrend over the quarter, with the share falling more than 21% in three months and 7.39% over the month.
At this level, Eramet ranks among the sharpest declines in the SBF 120 on Monday, within an index itself trending lower. One-month volatility stands at 16.43%, a high level that bears witness to persistent instability in the price since summer. The VIX, for its part, surges nearly 14% during the session, signaling a rise in tensions across broader markets.
A degraded technical configuration as the Weda Bay mine has just restarted
Today's decline comes as Eramet had just published, on September 10, the restart of the Weda Bay nickel mine after four months of stoppage in maintenance mode, an operation authorized by Indonesian authorities. This announcement had supported a 3% rebound last Thursday, but the movement did not hold. The technical configuration remains degraded: the price is below the 20-day moving average at €45.64 (gap of 5.57%) and the 50-day moving average at €44.91 (gap of 4.03%), and the distance to the 200-day moving average at €54.06 exceeds 20%. These three moving averages form a structural ceiling above the price.
The RSI at 50 remains neutral, with no signal of selling exhaustion at this stage. Resistance at €48.26 constitutes the first obstacle toward a potential recovery, some 12% above the latest price. According to analyst consensus available, the upside potential remains significant relative to current prices, but the short-term downtrend remains dominant as long as the share trades below its moving averages.
