Legrand stock rebounds despite triple moving average ceiling to overcome

A rebound insufficient to offset the pressure from moving averages

Legrand gains 1.54% during the session at €135.00, recovering some of the ground lost over the past week. The stock remains, however, below all of its moving averages: the 20-day MA at €137.33 and the 50-day MA at €137.43 form a ceiling approximately 1.7% above the current price, while the 200-day MA at €139.65 lies further away, at a 3.33% gap. This triple moving average ceiling underscores that today's rebound has not yet restored the technical configuration of the stock.

The RSI at 42 remains in negative territory without reaching oversold conditions, reflecting recent selling pressure still present. The support level at €132.35 offers a nearby floor, just over 2% below the current price.

Solid fundamentals driven by data centers, in a tense macroeconomic context

Despite the recent stock market correction, results published on July 29, 2026 for the first half showed robust operational momentum: Legrand posted record sales growth of +17% on an organic basis, driven by strong demand for data center equipment, and raised its annual targets. This favorable fundamental backdrop contrasts with today's macroeconomic environment, marked by the highly anticipated Federal Reserve decision, widely expected to raise its benchmark rate by 25 basis points from the current level of 3.6%. A rise in U.S. interest rates mechanically weighs on valuations sensitive to financing conditions, which may explain part of the volatility observed on Legrand since early September.

Moreover, the construction sector outlook in France remains under pressure (sector confidence at -18.2 and housing permits declining 8% year-on-year), a context weighing on demand for electrical equipment outside data centers. Wednesday's session remains to be confirmed: the stock will need to break through its 20-day MA at €137.33 to lend credibility to a turnaround.