Rexel Shares Drop 3% and Fall Back to 20-Day Moving Average
The electrical equipment distributor undergoes a sharp correction mid-morning in a Parisian market weighed down by the return of volatility. The stock approaches its short-term moving average as both the CAC 40 and SBF 120 see significant declines.
Rexel Stock Returns to its MM20 in a Pressured Paris Market
Rexel's stock falls by 3.26% to €37.13, down from €38.38 at the previous close. This decline places the stock among the steepest drops in the SBF 120, as the index itself loses 1.10% and the CAC 40 drops 1.09% during the session. The market context is deteriorating: The VIX jumps from 16.78 to 20.33, an increase of 21.16%, signaling a sharp return of risk aversion in European markets. The price remains at the contact of the 20-day moving average (€36.99), despite the day's decline, a threshold that the stock had just revisited after a first test at the end of May. The 50-day moving average at €36.79 is just below, and the technical support identified at €35.25 outlines the potential retracement zone. The RSI at 59 remains neutral, with no signs of exhaustion at this stage. The stock maintains a comfortable cushion over the long term, with a price still nearly 11% above its 200-day moving average at €33.46.
A Decline that Fits into a More Restrictive Sectoral and Monetary Context
The session unfolds in a European environment marked by a noticeable hardening of the tone from major central banks. The ECB has raised its benchmark rates, and the Bank of Japan has set its rate at the highest level since 1995. Strategists from Barclays mentioned in this note believe that the phase of supporting equity markets through accommodative policies has ended, which particularly weighs on European cyclical stocks. Long-term yields reflect this turn, with a 10-year Treasury around 4.50% and a Bund at about 3.0%. Despite today's correction, Rexel maintains a strong track record: up 18.44% over three months and 48.22% over a year. The weekly performance remains positive (+2.17%), and the one-month volatility measured at 8.13 remains contained. The resistance at €38.57, tested last week, now marks the technical ceiling for the short term. The maintenance of the 20-day moving average will be the reference point to follow for the continuation of the bullish movement initiated since spring.
