Rexel stock hits its €36.96 resistance, but up 5% over the week
The electrical equipment distributor takes a breather at the close in a stable Paris market. The stock slips below a technical threshold it had been testing for several days, while its medium-term benchmarks remain below the current price.
A pullback to €36.36 at the €36.96 resistance
Rexel shares fell 1.62% to €36.36, after touching the €36.96 zone the previous day, which acts as a resistance level. This level already halted the stock's progress at the resistance tested in early November, which partly explains today's pullback.
The price nonetheless remains above its three moving averages: the 20-day MA at €34.39 (a gap of 5.73%), the 50-day MA at €35.06 (3.71%) and the 200-day MA at €36.05 (0.86%).
Over the week, the stock retains a gain of 5.73%, and over one month, 5.21%. Today's decline therefore does not call this rebound into question, all the more so as the RSI at 59 remains neutral.
The stock is losing ground while the SBF 120 gains 0.05%, and it ranks among the index's laggards during the session.
A rebound that extends the third-quarter results release
The stock had gained ground after the October 22 release, when Rexel raised its annual growth target to approximately 7%, compared with approximately 5% previously, with quarterly sales of €5,453 million, up 11.4% on a like-for-like basis. Over three months, however, the performance remains negative (-3.32%), while it shows a gain of 19.29% over one year.
On the macroeconomic front, the construction climate in France stood at -20.9 in October, compared with -7.1 for the European Union as a whole, a context to keep in mind for a distributor exposed to the building cycle. For now, the €36.96 resistance remains the level the stock must reclaim to extend its advance.
