Michelin Stock Benefits from Brent Easing and Moves Above Its Averages

The Stock Rebounds by 2% to €31.64 in a Favorably Oriented CAC 40

Michelin's stock gains 2.06% to €31.64 at midday, among the strongest rises in the CAC 40, which is up by 1.01%. The movement follows the easing of Brent, which falls by 2% to $91.84 a barrel after the release of a memorandum of understanding between American and Iranian negotiators. As fuel directly impacts logistics costs and the demand for replacement tires, the tire manufacturer traditionally benefits from a prolonged decline in the barrel. However, the stock remains down by 8.02% over three months and has lost 6.61% over a year, reflecting a turbulent stock market journey since the start of the year. Moreover, the group also confirmed on Thursday a workforce adaptation project in France aiming for up to 1,500 job cuts over three years, based solely on voluntary departures, in response to production costs deemed too high.

The Rebound Places the Stock Above Its Three Key Moving Averages

At €31.64, the stock moves above its MM20 (€31.35), MM50 (€30.74), and MM200 (€30.28), with respective gaps of 0.93%, 2.93%, and 4.49%. This configuration places the tire manufacturer in a more favorable technical dynamic after several weeks of oscillating around these thresholds. The RSI at 48 remains in a neutral zone, without any excess signal, while the resistance identified at €32.42 (already tested on May 6 at €32.46 before a decline) remains the next upper limit of the chart. The technical support is, for the record, at €30.23, slightly below the MM200. The holding of the €32.42 zone remains the threshold to watch in the coming sessions.