Orange stock, oversold, extends its 9% decline over one month
The telecom operator has been accumulating losses for several weeks, and Tuesday's session does not reverse the trend. The European contract secured by Orange Business today does not ease the pressure on the stock price, which remains well below its moving averages in a nearly stable CAC 40.
A major European contract for Orange Business facing a stock under pressure
Orange secured a significant contract today: Orange Business was selected to deploy the TESTA-EIRIS backbone network, the secure communication infrastructure intended for institutions and public administrations of European Union member states. This project aims to protect data exchanges between public entities across the continent, a considerable scope. However, this announcement is not enough to lift the stock price during the session.
It must be said that the Orange Business division remains a point of fragility: when publishing first-half 2026 results on July 28, the group had reported a 3.1% decline in revenues and a 6.4% decrease in EBITDAaL on this segment, in a difficult market environment. The TESTA-EIRIS contract is part of the recovery strategy, but the market remains cautious about this division's ability to turn things around.
RSI fallen to 28 and three moving averages far above: the technical setup remains degraded
The stock is down 1.15% to €13.78 during the session, extending a decline of over 9% in one month and nearly 19% over three months. The chart configuration is clear: the stock is trading well below its three moving averages, with a gap of nearly 9% below the 20-day MA at €15.14, nearly 13% below the 50-day MA at €15.80 and over 16% below the 200-day MA at €16.50. These three levels form a multiple resistance that the stock has been unable to approach for several weeks. The RSI at 28 indicates a marked oversold configuration, similar to that observed during the mid-September lows.
This oversold zone has not yet produced a lasting rebound: the downward break of the €14.40 threshold last week had already illustrated this fragility. The next identified support level is at €13.94, very close to the current price, and its holding or breach would determine the next sequence. According to the consensus of surveyed analysts, the stock is trading around 9.8 times expected earnings for the current fiscal year, a contained multiple for a telecom stock of this size.
