Renault Shares Lag in CAC 40, Pressured by Short Sellers
The diamond-shaped logo manufacturer falls again this Tuesday mid-session, as the Paris index moves upwards. The stock extends a difficult May, marked by declining registrations, and bearish positions continue to strengthen.
Renault Trails the CAC 40 and Remains Distant from All Its Moving Averages
Renault shares drop 1.72% to €27.95 at midday, while the CAC 40 gains 0.63% at 8,198 points. The stock is the worst performer in the Parisian index, trailing behind EssilorLuxottica and Carrefour, in a market otherwise boosted by STMicroelectronics (+11.11%). Over a week, the decline reaches 2.85%, and the drop amounts to 6.11% over a month. The price is below its three moving averages: 2.78% below the MM20 (€28.75), 5.16% below the MM50 (€29.47), and 14.24% below the MM200 (€32.59). The stock is now approaching its support at €27.44, already tested in mid-May. The RSI at 46 remains neutral, with no sign of seller exhaustion. Resistance lies at €31.66, a level that has capped the stock for several sessions.
Decline in Registrations in May and Increasing Bearish Pressure from Funds
The decline follows the release of May registration figures by the PFA, showing a 9.80% drop for Renault Group, while the French market grew by 1.0% year-on-year. The manufacturer also detailed a three-phase roadmap for electric vehicles, with a utility program launched on June 1st, opening of pre-orders for social leasing on June 16th, and deployment of the scheme on July 16th. According to reviewed statements, four funds cumulate a net short position of 4.39% of the capital, up by 0.93 point over thirty days. This level indicates an intensifying selling pressure around the stock, to be interpreted cautiously: it signals institutional investors positioned for a decline, without predicting the course's evolution. Based on expected earnings, the stock is trading at about 4.0 times the earnings for the current fiscal year, according to the consensus of surveyed analysts. The next marker for the market remains the stock's behavior at its support level of €27.44.
