Renault Shares Break Key Support and Fall Nearly 5% Below Its MM20
The diamond-shaped logo manufacturer resumes its decline in early afternoon trading, in a Parisian market leaning towards selling. The stock breaks a closely watched technical threshold downwards, as short selling remains high on the capital.
The Stock Breaks Its Support at €26.81 and Dips Below Its Three Moving Averages
Renault shares dropped 1.22% to €26.79, down from €27.12 the previous day. During the session, the price broke through its support at €26.81, a level that had acted as a support point yesterday after an initial dip in the morning. The stock is now trading below its three moving averages, with a gap of 4.80% below the MM20 (€28.14) and 8.85% below the MM50 (€29.39). The MM200 at €32.40 remains more than 17% away, indicating a still deteriorating underlying trend. The RSI at 41 does not yet indicate an oversold configuration, which leaves room for further decline. Over the past month, the stock has lost 6.33%, and 38.34% over the past year.
High Short Positions Persist and an Analyst Maintains a €40 Target
According to gathered statements, four funds hold a combined net short position of 4.70% of the capital, a slight decrease of 0.26 points over thirty days. The level remains high and reflects a continued caution from institutional investors positioned against the stock, without indicating a recent acceleration of distrust. From the analysts' side, CIC Market Solutions reaffirmed yesterday its buy recommendation with an unchanged target price of €40, representing a theoretical upside of nearly 49% from the current price. Based on the consensus of the surveyed analysts, the stock is trading at approximately 3.9 times the earnings of the current fiscal year. The stock remains under observation around the €26.81 zone, whose loss could technically pave the way for a continuation of the downward movement.
