Renault shares decline, weighed down by rising interest rates

A decline that brings the share below its 20-day moving average in a market under rate pressure

Renault falls 2.42% to €28.25 during the session, erasing a large portion of the rebound recorded the previous day, which had seen the share regain the top of the CAC 40. The manufacturer thus falls below its 20-day moving average (€28.81), while remaining above the 50-day MA at €27.93, with a slight cushion of 1.15%. The movement is part of a CAC 40 down 0.69% and an SBF 120 also in negative territory, as the Bank of Japan raised its key interest rate this Friday to 1.25%, its highest level since 1995, in the wake of the Fed which raised its rates this week for the first time since 2023.

This context of widespread rate increases weighs on cyclical sectors, of which the automotive industry is part. The RSI at 52 remains neutral, with no oversold signal, which does not support an immediate technical rebound. The natural support level to monitor is located at €27.22, or approximately 3.6% below the current price.

Short positions on the rise and marked valuation discount on the share

On the fundamentals, downward pressure remains perceptible beyond the session. According to the declarations consulted, seven funds cumulate 7.06% of capital sold short, a high level, increasing by 0.88 point over thirty days. This movement reflects persistent institutional distrust in the value, without however signaling a sharp acceleration of the bearish bet.

Over one year, the share is still down nearly 20%, which places the valuation at a historically low level: according to the consensus of analyzed brokers, the stock is trading at approximately 4.3 times the expected profits of the current fiscal year. This multiple reflects persistent doubt about the group's profit trajectory, whereas at the time of the publication of H1 2026 results on July 30th last, Renault had posted revenue up 9.5% to €30.3 billion with an electrified mix in Europe reaching 52.0%, up 8.2 points. The technical resistance at €29.72 remains the immediate obstacle to overcome for a possible upside reversal.