Nexans Shares Drop 11.5% in One Month, Breaking Key SBF 120 Support
The French cable manufacturer continues its summer slide, moving against the grain of a generally positive Parisian market. The stock has once again breached a closely watched technical threshold, just as the company has sealed a significant industrial partnership with Norwegian firm Hydro.
The Stock Breaks Below Its €137.80 Support, Losing 11% Over a Month
Nexans shares fell 2.55% to €137.60 by midday, after breaking through its support level at €137.80 during the session. The stock is now trading below this threshold, extending a significant correction phase: the decline reaches 11.11% over a month. The cable maker is among the biggest losers in the SBF 120, while the broader index has gained 0.44% during the session. The technical configuration has significantly deteriorated. The price is below the 20-day moving average (€147.25, a gap of -6.55%) and the 50-day moving average (€154.32, a gap of -10.83%), while the 200-day moving average at €132.88 remains the next medium-term buffer, about 3.4% below the current price. The RSI at 42 indicates a weakening momentum without signaling an oversold zone. Despite this correction, the underlying trend remains positive over a year, with a gain of nearly 30%.
A Contract for 85,000 Tonnes of Low-Carbon Aluminum Signed with Hydro
On the industrial front, Nexans announced on Monday a five-year supply agreement with Norwegian producer Hydro for approximately 85,000 tonnes of low-carbon aluminum wire rod. This material, produced using 100% renewable energy, will supply the group's European electrical infrastructure modernization and decarbonization projects. This agreement follows the completion in early July of the sale of Autoelectric to Motherson for 207 million euros, which completes the portfolio rotation initiated in 2021 around electrification, as the stock tests the strength of its €137.80 support.
