Rexel shares up 6.5% over one month and testing their €36.37 resistance level
The electrical equipment distributor posts a marked gain mid-session in a well-oriented Paris market. The stock extends a rebound that began several weeks ago and regains all of its medium-term benchmarks.
A rebound that puts the stock back above all its moving averages
Rexel shares gain 2.4% to €36.25 intraday, among gains that remain contained within the SBF 120, where the index advances 1.04%.
The price is trading close to its resistance at €36.37, a level it has not yet broken through, and above its 20-day moving average (MM20) at €33.91 (a gap of 6.9%), its 50-day moving average (MM50) at €35.01 and its 200-day moving average (MM200) at €36.05. The latter, which separates the underlying trend from a simple recovery, is only exceeded by 0.55%.
The stock had already regained its MM50 on November 5, after shedding 12.5% over one month on the eve of its quarterly sales. It is up 6.3% over one month, which erases part of that decline, but remains 3.4% lower over three months.
A mixed construction cycle as the backdrop for the distributor
Third-quarter sales, published on October 22, rose 11.4% on a like-for-like basis, and the group had raised its annual growth target to approximately 7%, compared with approximately 5% previously. On the economic front, the construction climate in France stood at -20.9 in October, against -7.1 for the European Union as a whole.
Housing starts nevertheless rose 24.8% year on year on a rolling twelve-month basis, according to SDES data.
The next technical benchmark is the €36.37 resistance level, which the stock is now testing.
