Orange shares decline by nearly 2.5% and test their 50-day moving average
The telecommunications operator's share falls significantly at the close, against the backdrop of a rising CAC 40. A profit-taking move following the sharp rebound of the week, while the share remains well-positioned above long-term moving averages.
Profit-taking following the publication of half-yearly results on Tuesday
Orange shares fell 2.27% to €17.00, while the CAC 40 gained 0.91% to 8,484.89 points. The decline occurred two sessions after the publication of half-year results on July 28, which had propelled the stock to the top of the CAC 40. The operator had posted revenue growth of 3.5% to €20.9 billion and EBITDAaL growth of 5%, driven by Africa, the Middle East and the consolidation of MasOrange.
The downside was offset by net debt which surged to €35.7 billion, taking the debt-to-EBITDAaL ratio to 2.4x, far from the 2x target. Today's session appears to be a digestion of these announcements, with the stock still gaining 3.53% over the week and 27.71% over the past year.
The share remains above its long-term moving averages despite the decline
From a technical perspective, today's decline brings the price into contact with the 50-day moving average (€16.98), which it remains just above for now. The 200-day MA at €16.15 remains 5.29% below the price, and the 20-day MA at €16.26 maintains a cushion of 4.58%, which preserves the medium-term bullish structure. The RSI at 63 moves away from the overbought zone approached at the beginning of the week and becomes more neutral again.
The resistance level identified at €17.40 (yesterday's closing price) constitutes the upper band tested this week, while the support at €15.70 remains distant. The next key event to watch is the publication of third-quarter revenue, to be monitored in the autumn in line with the analysts' consensus.
