Safran Shares Drop 2% at Opening
The aerospace engine manufacturer opens this Monday's session deep in the red, among the most troubled stocks of the CAC 40. The surge in oil prices amid new tensions in the Middle East weighs on the entire aerospace sector, including Airbus, which is also declining.
Safran Loses Ground Following Other Aviation Stocks
Safran's stock fell 2.11% to €292.20 at the opening, down from a previous close of €298.50. The stock is at the bottom of the CAC 40, which itself fell by 0.59% to 8,169.88 points. The aerospace sector is suffering from the new spike in crude oil prices, with Brent rising more than 2% to around $95-$96 following new Israeli strikes in Lebanon. A high oil price traditionally impacts the costs of airlines, which are the final customers of engine manufacturers. Airbus also fell by nearly 2%. Over the past week, Safran has lost 4.42%, erasing some of the gains made at the end of May.
The Stock Falls Below the Symbolic €300 Threshold, Yet Remains Above Its Short-Term Averages
This morning's decline takes Safran back below the symbolic €300 threshold, after the stock had challenged the resistance at €305.70 last Thursday. However, the price remains slightly above its MM20 (€289.27) and MM50 (€289.03), with a gap of about 1%. The MM200 at €299.98 is just above the current price, creating an immediate technical obstacle. The RSI at 55 remains in the neutral zone and does not indicate any signs of exhaustion. Over three months, the stock has declined by 8%, but it still shows a gain of nearly 10% over one year. The support level at €265.20, tested in mid-May, remains the next reference point for a potential further decline.
