Renault's Stock Bounces Over 4% and Reaches its 20-Day Moving Average
The diamond-shaped logo manufacturer sharply rebounds at the opening, following a significantly bullish CAC 40. The stock mitigates the sharp drop from June 10 and attempts to reclaim technical benchmarks lost over several sessions. This movement is particularly notable as the short-selling bet remains high on the capital.
A Marked Rebound Bringing the Stock to the 20-Day Moving Average
Renault's stock rises 4.29% to €27.98 at the opening, among the strongest gains in the CAC 40, while the Parisian index advances by 1.52%. The movement comes after a session of sharp decline on June 10 (the stock had lost nearly 5% and breached a key support). The rebound brings the price right to its 20-day moving average (€28.00), a threshold that was crossed downwards earlier in the week. The MM50 (€29.32) and MM200 (€32.34) remain well above the current price, with respective gaps of 4.6% and 13.5%, indicating that the underlying trend remains under pressure. The RSI at 39 indicates a stock that is gradually exiting the low zone without signs of overheating. Over three months, the stock still shows a decline of 3.2%, and nearly 37% over a year. The session's context also favors the stock: Brent crude falls more than 5% and returns below $90 a barrel amid hopes of de-escalation between the United States and Iran. The automotive sector, indirectly sensitive to household energy bills, benefits from this decline. Stellantis also leads the CAC 40 with a comparable rise.
Still Heavy Short-Selling and a Consensus Maintaining Strong Potential
According to reviewed statements, four funds cumulate a net short position of 4.70% of the capital, a level that remains high despite a slight decrease of 0.33 points over thirty days. A significant fraction of institutional participants thus remains positioned for a decline in the stock, which can amplify movements in both directions when shorts cover. This should be monitored without making it the sole narrative of the case. Regarding analyst opinions, CIC Market Solutions reiterated on June 10 its buy rating on the stock, with a target price maintained at €40.00, representing a theoretical upside of about 43% from the current price. Based on the consensus of surveyed analysts, the stock trades at about 4 times the expected earnings for the current fiscal year, a low multiple that reflects the mistrust accumulated over a year. Among the regularly monitored events is the monthly tracking of registrations, a point of attention after the drop in May. Contact with the MM20 remains the technical threshold to watch to gauge the strength of the rebound.
