Legrand stock breaks through its support level at €132.35 and slides to the bottom of the CAC 40

A support level breached during the session, below all moving averages

The price of Legrand stands at €131.55 and loses 1.83% compared to the last closing (€134), below the €132.35 support level breached during the session. This level had held until now, and the stock finds itself below the 20-day MA (gap of 5.34%), the 50-day MA (4.94%) and the 200-day MA (6.66%). The weekly decline reaches 5.29%, following an already difficult session on October 15.

The RSI at 42.6 remains neutral: it indicates neither oversold conditions nor exhaustion of the movement. The stock ranks at the bottom of the CAC 40 table, which falls 1.33% in mid-session. This downward trend is taking place in a context of tensions over French debt and urban violence that occurred over the weekend, which weighed on the Paris stock exchange from the opening.

A construction cycle still gloomy in Europe

September's economic indicators remain pointing downwards: the construction climate stands at -17.2 in France and -6.1 in the European Union, while French sector production declines 5% year-over-year. Housing building permits fall 9.5% over twelve months. Legrand remains exposed to this cycle through its building equipment activity.

Over the past year, the stock falls 8.93%, and only 3.13% over one month. The former support level breached at €132.35 now becomes resistance; the stock must first reclaim its 20-day MA at €138.97 to confirm a technical reversal.