Legrand the laggard of the CAC 40, below its three moving averages
The electrical infrastructure specialist trails the CAC 40 in mid-afternoon trading, in a directionless Parisian market. The stock erases the rebound sketched at the end of June and falls below its three moving averages, while the rest of the market is buoyed by cyclical stocks.
Legrand at the bottom of the CAC 40 as the index stalls
Legrand's stock falls 2.12% to €138.35, occupying the last place in the CAC 40. The Parisian index is nearly stable (-0.04%) at 8,323.58 points, while the SBF 120 is balanced. The stock clearly detaches from the pack, lagging behind ArcelorMittal (+5.65%) and Stellantis (+3.04%) which are driving the market.
The day's decline brings the weekly performance to -1.95% and erases the recovery movement observed on June 30, when the stock had moved back above its 20-day moving average. Over three months, the stock has lost 5.88%, but it retains a gain of 21.63% over one year. The VIX at 15.59 points, slightly down, does not indicate any particular nervousness at the level of the American indices.
The stock falls back below its three moving averages, RSI at 43
Today's movement sends the stock price below the three moving averages followed by technical analysts: the MM20 at €144.42 remains 4.20% above the current price, the MM50 at €147.55 is 6.24% higher, and the MM200 at €140.25 is 1.35% above. The latter, long used as a pivot, now acts as a nearby resistance. The RSI at 43 remains neutral, far from the oversold condition observed in mid-June when it had dropped to 29.
The support identified at €133.55 is the next quantified level in case of an extended decline, while the resistance at €154.05 remains out of immediate reach. In the background, the construction sector remains weakened (construction climate in France at -18.2 in June according to Eurostat, housing permits down 5.5% over twelve months), which weighs on the demand for residential electrical equipment. The next concrete appointment for the stockholders remains the publication of the half-yearly accounts, expected at the end of July according to the usual schedule of the group.
