EssilorLuxottica Shares Drop 4% and Fall Below Moving Averages

A Drop That Sends the Stock Below Its Short-Term Moving Averages

EssilorLuxottica shares lose 4.09% to €168.70, down from €175.90 the previous day. This movement abruptly breaks the rebound praised on Tuesday, when the stock had moved back above its moving averages. The price falls below the MM20 (€173.18) and MM50 (€173.82), with a gap of about 2.6% and 3.0% respectively. The MM200 at €238.92 remains far off, with nearly a 29% gap, extending the underlying bearish trend reflected by a decline of nearly 29% over the year. Over three months, the stock has lost 11.3%. Today's drop occurs in a significantly deteriorated market environment: the CAC 40 is down 2.21% during the session and the SBF 120 is down 2.18%, while the VIX jumps 19.5% to 18.61. Announced new strikes between the United States and Iran, with claimed retaliations towards Kuwait and Bahrain, weigh on the entire European market. EssilorLuxottica is among the biggest losers in the CAC 40 in this session of widespread selling, alongside Societe Generale, Saint-Gobain, and Stellantis.

A Support Level at €162.25 in Sight After Breaking Short-Term Benchmarks

The decline brings the stock into contact with a previously watched zone. The identified support at €162.25 is now only about 3.8% away from the current price: this same threshold was tested at the end of June, before the recent rebound. The resistance at €184.05 moves further away, over 9% above the current price. The RSI at 53 remains in a neutral zone, with no signs of excess at this stage, and the MACD maintains a slightly positive histogram despite the intraday relapse. The stock remains in a challenging phase: more than 29% down from the long-term peak reflected by the MM200, and a monthly volatility of 8.9% that reflects recent nervousness around the stock. The behavior of the price around the support at €162.25 will be crucial in the short term for the maintenance of the stabilization zone outlined since the end of May.