Renault Shares Drop 2%, Short Sellers Increase Their Bets

The stock weakens below all its moving averages at mid-session

Renault shares drop 1.71% to €27.54, among the steepest declines in the CAC 40, as the Parisian index falls by 0.31%. The decline extends over the week (-3.91%) and reaches 7.49% over a month, illustrating a sustained downward trend. The stock is now trading below its three moving averages, with a gap of 3.94% from the MM20 (€28.67) and 15.44% below the MM200 at €32.57, indicating a fundamentally deteriorated trend.

The price approaches the support at €27.44, whose hold will determine the continuation of the movement, while the RSI at 44 remains neutral, with no sign of seller exhaustion. A downward breach of this zone would open up a technical space towards the recent lows observed in mid-May.

Short positions strengthen, bond placement goes unnoticed

According to reviewed statements, four funds now cumulatively hold 4.39% of the capital sold short, a progression of 0.93 points in a month (previously 3.46%).
The movement occurs the day after a bond placement of €750 million due 2031, with a coupon of 4.125%, an operation that failed to reverse the stock market trend. The valuation remains modest, with the stock trading at about 3.9 times the expected earnings for the current fiscal year according to the consensus of surveyed analysts. Kepler Cheuvreux confirmed yesterday its 'Hold' recommendation with a target of €31, approximately 12% above the current price. The support at €27.44 is now the technical level to watch.