EssilorLuxottica Shares Drop 1.27% to €171.05, Approaching its Support at €165.45
The stock of the Franco-Italian optical giant fell by 1.27% to €171.05 this Monday midday, in a CAC 40 that dropped by 0.67% to 7,899 points. The downward trend remains heavy, with a decline of 29.64% over three months and 34.39% over a year. The context of tensions on global bond yields and Brent crude above $110 weighs on rate-sensitive stocks.
Price Below its Three Moving Averages with an RSI at 37
EssilorLuxottica stock is trading below its three reference moving averages. The 20-day moving average at €182.87 is 6.46% above the current price, the 200-day moving average at €255.52 reflects the extent of the medium-term drop, with a gap of more than 33% from the current level. An RSI at 37 indicates seller fatigue without a clear oversold signal. The stock is in the lower part of the Bollinger Bands (30%), above the lower bound at €153.89. The support threshold at €165.45 is the next technical reference level; it is now only 3.3% away from the current price. The session is part of a long-term degradation: the stock has already recorded a low since 2023 at €162.50 on May 12, as highlighted in recent sessions.
Rising Yields and Oil Shock Weigh on the Luxury Sector
The global context remains unfavorable for European consumer-sensitive stocks. US and Japanese bond yields are soaring, with the 10-year Treasury reaching 4.63%, its highest since February 2025. Concurrently, Brent crude trades above $110 per barrel, amid tensions related to the war in Iran and the prolonged blockade of the Strait of Hormuz. This double shock, long-term rates and energy, fuels the scenario of sustained inflation and a longer restrictive monetary policy. The luxury sector took a hit this Monday: Kering is down 2.26%, Hermès International 2.25%, LVMH 1.66%. EssilorLuxottica declines less sharply but follows the same trend. On the fundamentals side, the group had published a quarterly revenue of €7,127 million at the end of April, up 10.8% at constant exchange rates. This third consecutive quarter of double-digit growth was not enough to stop the decline in the share price. The next appointment on the calendar: the first half 2026 results, expected on July 28.
