Michelin stock breaks through its support level at €34.01 and slides below the 20-day moving average

A decline of nearly 3% that pushes the stock below its two initial moving averages

Michelin stock is down 2.89% in trading at €33.66, after closing at €34.66 the previous day. The movement is sufficiently pronounced for the stock to break through its support level at €34.01 downward, a threshold that had previously served as a short-term floor. This breakthrough is accompanied by a move below the 20-day MA (€34.66) and the 50-day MA (€34.63), with both moving averages now above the price with a gap of approximately 2.8%.

The 200-day MA at €31.80, well below the current price, represents the only remaining moving average support, with a positive gap of nearly 5.9%. The RSI at 51 remains neutral despite the magnitude of today's decline, which reflects the absence of characterized seller exhaustion at this stage. The stock is moving within a CAC 40 down 1.84% in trading, where virtually all stocks are in the red, with Michelin's movement thus part of a broad correction in the index.

CIC Market Solutions maintains its "hold" rating with a €35 target

Regarding analyst opinions, CIC Market Solutions maintained its "hold" opinion on the stock on September 7, with an unchanged price target of €35. At this level, the target implies an upside potential of approximately 4% compared to the current price. This position is taken in the same week as Monday's decline, already documented in the technical analysis from September 7 where the stock was bumping up against its moving averages at €34.58.

Over the trailing week, performance stands at -3.5%, bringing the monthly decline to -2.6%, while the three-month performance remains positive at +5.88%. Furthermore, Michelin launched on September 8 an employee stock ownership plan at €24.26, representing a 30% discount to the current price, open to approximately 114,000 employees in 44 countries. The next technical reference point to monitor remains the 200-day MA at €31.80, still approximately 6% below the current price.