Renault Shares Bounce Back 3% and Lead the CAC 40
The diamond-shaped logo manufacturer recovers some of yesterday's losses and takes the lead in the Paris index by mid-morning. The stock approaches a closely watched technical benchmark, while the short-selling position remains high in the capital.
Renault Rebounds 3% and Approaches its 20-Day Moving Average
Renault shares gain 3.03% to €27.85, leading the CAC 40 as the index climbs by 0.32%. The stock approaches its 20-day moving average (MM20) at €27.92, with a minimal gap of 0.25%. This rebound follows a record low since 2022, reported in a brief yesterday. The RSI at 42 remains in a neutral zone, indicating a recovery movement without excess. However, the long-term moving averages continue to decline, with the MM50 at €29.09 and the MM200 at €32.20, marking a 13.51% difference from the annual trend. The support at €26.69, tested at the start of the week, remains the lower boundary of the channel. According to reviewed statements, four funds cumulatively hold 4.96% of the capital sold short, an increase of 0.20 points over thirty days. This high level reflects a persistent skepticism from institutional investors positioned against the stock, without any sharp acceleration in recent weeks. A significant drop in the price can, in this context, fuel covering purchases and amplify technical rebounds.
Easing Oil Prices and Sustained Industrial Activity at the Manufacturer
The rebound occurs as Brent crude falls to $79.41 per barrel, down 15.8% over the last ten sessions, following the signing of a memorandum of understanding between Washington and Tehran and the gradual reopening of the Strait of Hormuz. This easing is favorable for the automotive sector, whose volumes are sensitive to the cost of fuel for the end customer. Industrially, the manufacturer finalized on June 17 the acquisition of 55% of Flexis held by Volvo Group and CMA CGM, aiming to start production of the Trafic Van E-Tech Electric by the end of 2026 in Sandouville. On the same day, Valeo confirmed the selection of its 48V two-speed electric axle for the future Duster, Bigster, and Striker models from Dacia, under the Hybrid-G 150 4x4 designation. CIC Market Solutions reiterated on June 18 their buy rating with a target of €40, representing a potential of about 43% compared to the current price. The consensus among analysts further values the stock at around 4 times the expected earnings for the current fiscal year. The support at €26.69 remains the low benchmark to monitor in case of a turnaround.
