Nexans Shares Drop Nearly 4% and Fall Below Their 20-Day Moving Average
The French cable manufacturer erases part of its recent rebound in a downward-trending Paris market. The stock falls below a closely watched technical threshold, as the session is marked by a return of volatility in European indices.
The Stock Falls Below Its 20-Day Moving Average and Approaches the 50-Day Moving Average
Nexans shares drop 3.9% to €152.80 at midday, after closing the previous day at €159. This movement erases part of the nearly 5% surge recorded last Friday, when the stock led the SBF 120 following the inauguration of its cable-laying vessel Electra in Oslo. The stock falls below its 20-day moving average (€154.84) and approaches its 50-day moving average (€152.66), which now acts as the first cushion. The RSI at 59 remains in the neutral zone, indicating a pullback without an oversold configuration.
The identified support at €144.90 is the next technical marker in case the decline intensifies, while the 200-day moving average at €132.28 remains more than 15% below the current price. Over longer horizons, the stock maintains a strong momentum, with a gain of nearly 36% over three months and more than 55% over a year. Today's decline is part of a consolidation phase after this bullish trajectory.
A Turbulent Session in European Indices Weighs on Cyclical Stocks
Nexans' downturn is part of a distinctly bearish European market, with the CAC 40 down 0.74% and the SBF 120 down 0.76% at midday. Volatility resurfaces, with the VIX jumping 18% to 19.81. Several industrial and technological stocks are penalized during the session, with Soitec dropping nearly 10%, STMicroelectronics more than 7%, and Renault more than 5%. The macroeconomic context remains marked by the hardening stance of major central banks (ECB, Fed, Bank of Japan), mentioned in an analysis published on June 21, against a backdrop of persistent tensions around the Strait of Hormuz.
The Federal Reserve maintains its range at 3.50%-3.75%, but nine members of the FOMC now anticipate at least one additional hike by the end of 2026. As a reminder, Nexans finalized the acquisition of American company Republic Wire in early June, strengthening its industrial footprint in North America. The €144.90 remains the reference threshold to watch for the continuation of the sequence.
