Renault Shares Drop Over 4% and Break Below €26.69 Support
The diamond-shaped logo automaker plunges at the opening and ranks among the worst declines in the CAC 40. The stock breaks a closely watched technical threshold and approaches a multi-year low in a heavy Parisian market where cyclical stocks are particularly shaken.
Renault Breaks Below €26.69 Support and Slides to the Bottom of the CAC 40
Renault shares fell 4.35% to €26.61 at the opening, after closing at €27.82 the previous day. The stock broke below its €26.69 support during the session and remains below this threshold, bringing it close to the multi-year lows already tested last week. This movement places Renault among the strongest declines in the CAC 40, just ahead of STMicroelectronics, which loses more than 6% in the same session. The Paris index is down 0.9%, in a context of increased volatility (the VIX jumps nearly 20% to 20.13).
The technical break is part of an unfavorable dynamic: the stock is now trading below its three moving averages, with a gap of 4.56% below the MM20 (€27.88), 8.15% below the MM50 (€28.97), and 17.23% below the MM200 (€32.15). The RSI at 48 remains neutral, indicating that today's decline occurs without a prior oversold configuration. Over the week, the stock loses 7.6%, and nearly 31% over a year.
High Selling Position and Depressed Valuation Against a Fragile Cyclical Environment
According to reviewed statements, the cumulative net short position on the capital reaches 4.96%, distributed among four funds, with a very slight increase over thirty days (+0.06 point). The level, above 3%, reflects the persistence of a structural selling bias on the stock, without a marked acceleration in recent weeks: institutional investors remain positioned against the stock or cover an exposure, without any capitulation movement or short squeeze appearing. This backdrop weighs on each relapse of the stock. In terms of valuation, the stock is trading at about 3.8 times the earnings for the current fiscal year according to the consensus of surveyed analysts, a multiple reflecting persistent distrust in the sector.
The macro context reinforces caution: the coordinated hardening of the tone of major central banks (the ECB raised its rates for the first time since 2023) fuels a more volatile environment, unfavorable to heavily indebted cyclical stocks. Renault had placed €750 million in bonds maturing in 2031 with a coupon of 4.125% at the beginning of June, illustrating the higher financing cost now faced by the automaker. The next technical threshold observable on the downside joins the zone of recent lows around €26.40.
