Renault Shares Drop 2% and Break Below Support Level
Renault's stock fell by 2.07% to €27.48 in mid-afternoon trading, despite a generally positive trend in the CAC 40 (+0.5% at 8,022 points). The automaker is among the biggest losers in the Paris index. During the session, the stock even dipped below its support level of €27.55, before making a slight recovery.
Stock Remains Below All Moving Averages
The intraday breach of the €27.55 support level marks a technical break. The stock briefly recovered above this threshold, but the area remains vulnerable. Over time, the outlook is unfavorable: the price is below the 20-day moving average (MM20) at €29.51, the 50-day moving average (MM50) at €29.43, and the 200-day moving average (MM200) at €32.75, which is more than 16% above the current price.
The Relative Strength Index (RSI) at 41 remains in the neutral zone and does not indicate overselling. Over three months, the stock has lost 14.55%, and nearly 44% over one year. Today's loss is part of a deteriorating trend, even as the session remains bullish for the Parisian market.
Increase in Short Positions and Unfavorable Macro Backdrop for Auto Sector
Net short positions declared indicate ongoing skepticism around the stock. According to the filings reviewed, four funds collectively hold 4.26% of the capital in net short positions, an increase of 0.40 percentage points over thirty days. This increase is not massive, but it shows that several institutional investors remain positioned against the stock, or are looking to hedge their exposure.
The macroeconomic context also affects the perception of the automotive sector. The UN has lowered its global growth forecast for 2026 to 2.5%, amid an energy shock linked to the war in Iran. China disappointed in April, with industrial production up only 4.1% year-on-year and retail sales nearly stagnant (+0.2%). In the United States, the Federal Reserve is now expected to maintain its current policy for an extended period, with the 10-year Treasury yield above 4.6%.
As a reminder, Renault's first quarter revenue, published on April 23, showed an increase of 7.3% to €12.53 billion, but Dacia's volume fell by 16.3%. According to the consensus of analysts surveyed, the stock is trading at approximately 4.0 times the expected earnings for the current fiscal year. The €27.55 support level, breached during the session, is the technical zone to watch in the coming sessions.
