Eramet Stock Rises 8% Marking One of the Best Rebounds in the SBF 120
The stock mitigates the decline accumulated over the month in a markedly bullish Parisian market.
A Technical Rebound That Brings Eramet Above Its 20-Day Average
Eramet's stock rises 8.29% to €53.80 by midday, up from €49.68 the previous day. The stock ranks just behind Air France-KLM in the SBF 120, which is up 1.66% at the same time. This jump mitigates the monthly decline of 10.33%, but is not enough to reverse the underlying trend.
The price moves back above its 20-day moving average (MM20) at €53.39 (+0.77%), a threshold that had been lost at the end of May. However, it remains below the 50-day moving average (MM50) at €54.34 and the 200-day moving average (MM200) at €56.94, at 0.99% and 5.51% off the current price, respectively. The RSI at 38 moves out of the recent tension zone and the MACD remains in negative territory, indicating that today's movement is for now just a technical rebound after testing the support at €48.30.
A Rebound Occurring in a Favorably Oriented Parisian Market and After the IA-BRGM Agreement
The rebound occurs in a favorable market context, with the CAC 40 up 1.69% and the VIX relaxing by 14% to 19.11. The bearish pressure of the past weeks had been fueled by several factors specific to the group: partial restart at 30% of the Senegalese site after the February fire, target downgrades by analysis offices, and a €500 million capital increase approved at the general meeting on May 27. In recent news, the framework agreement signed on June 9 with Lithosquare and BRGM aims to combine AI and geological data to identify new deposits of critical metals.
Over a year, the stock maintains a gain of 12.6%, but shows a loss of 2.71% over three months. The next technical marker is at the MM50 (€54.34), whose reconquest would validate a clearer turnaround.
