Renault share breaks below its 27.07 € support level, shorts at highest

A 27.07 € support broken during the session, the stock at its weekly low

Renault's share falls 1.69% to 26.80 € during trading, breaking through the 27.07 € support identified as a short-term reference level. The stock has not risen above this threshold since its downside breakout, confirming the pressure exerted on the carmaker over several days. On a weekly basis, the decline reaches nearly 9.5%, illustrating the magnitude of the ongoing correction.

The price is now trading well below its three moving averages: the MA20 at 28.62 €, the MA50 at 28.02 €, and the MA200 at 29.81 €, representing respective gaps of 6.36%, 4.35%, and 10.10%. The RSI at 43 remains in neutral territory, without any clear signs of selling exhaustion at this stage. The CAC 40, for its part, declines 0.32% during the session, in a market that is globally lacking clear direction, which singles out Renault's decline.

High short positions and a fundamental context weighing on valuation

According to filed declarations, eight funds cumulatively hold 7.87% of Renault's capital sold short, a level up 1.08 percentage points over thirty days (compared to 6.79% a month earlier). This volume of shorts, among the highest in the CAC 40, reflects significant institutional bearish conviction on the matter, without allowing precise identification of motivations. It does not necessarily imply an imminent deterioration, but it signals that structural selling pressure remains present around the security.

On the fundamental side, Renault posted, when releasing its first-half 2026 results (July 30, 2026), revenue growth of 9.5% to 30.3 billion euros, with a return to profitability, while pointing to a challenging environment for 2026 and negative currency effects. Based on expected earnings, the stock trades at approximately 4.1 times current fiscal year earnings according to the consensus of surveyed analysts, a low valuation that reflects uncertainties weighing on the automotive sector. The next technical resistance level stands at 29.72 €, a level now very far from the current price.