Nexans Shares Drop 2% Breaking Below the €148 Support Level
The French cable manufacturer deepens its decline in mid-session, in a downward trending Parisian market. The stock continues its consolidation after the spring rally, moving below a closely watched technical threshold.
The Stock Breaks Its €148 Support and Falls Below Its Short-Term Moving Averages
Nexans shares fell by 2.08% to €145.70 in early afternoon trading, while the SBF 120 index dropped by 0.74%. During the session, the stock broke below its €148 support level and failed to rise above it again. It is now trading at 0.97% below its 50-day moving average (€147.12) and 8.59% below its 20-day moving average (€159.39), confirming a short-term momentum exhaustion. The RSI at 42 remains in a neutral zone and does not yet indicate seller exhaustion. The 200-day moving average at €131.28, about 11% below the current price, remains a medium-term reference point.
A Consolidation Following a Nearly 23% Quarterly Rally
Today's decline brings the weekly loss to 9.17% and the monthly loss to 10.5%, yet the stock still holds a gain of 22.95% over three months and 42.29% over a year. This breathing period comes after a bullish sequence that had driven the stock to a historic high of €168.50 on May 14. Since then, several catalysts have supported the stock, including the completion of the acquisition of American company Republic Wire in early June, which expanded the group's industrial footprint in North America. The session unfolds in a context of tensions on raw materials, with Brent oil moving towards $92 following new US strikes against Iran, and a rise in the VIX (+18% to 22.28). The next technical reference to watch remains the 50-day moving average at €147.12, whose reconquest would condition a return to the €159 zone.
