Saint-Gobain stock rebounds 2% but remains below its three moving averages
The building materials and glazing manufacturer's share price recovered on Monday, posting one of the CAC 40's best performances during the session. The backdrop remains heavy, however: the share price is still well below its three moving averages and has accumulated a decline of more than 22% over twelve months.
A renewable electricity contract with TotalEnergies provides positive momentum
Saint-Gobain announced on Monday the conclusion of a renewable electricity purchase agreement with TotalEnergies, intended to cover the needs of its British industrial sites. This agreement is part of the group's decarbonization trajectory, which aims for carbon neutrality by 2050. The share gained 1.09% during the session at €70.58, after a previous close at €69.82, and ranks among the best performers of the CAC 40 at this stage of the day.
This rebound occurs in an almost stable Paris market, with the CAC 40 advancing by just 0.04% during the session. Over the past week, the share posted a gain of 2.11%, which partially offsets the monthly decline of 11.18%.
The technical configuration remains deteriorated despite today's uptick
The price of €70.58 sits below the 20-day moving average at €72.41 (gap of -2.53%), the 50-day moving average at €77.03 (gap of -8.37%) and the 200-day moving average at €78.97 (gap of -10.62%): the share is still trading below all its reference averages, reflecting a persistent underlying bearish trend. The RSI at 34 is approaching oversold territory, consistent with the correction dynamic that has been extending for several weeks, as evidenced by the declines mentioned in the brief from September 21 when the RSI had fallen to 27. The support level at €69.12 now constitutes the most concrete reference point: at less than 2% from the current price, its holding conditions the continuation of this rebound initiated from the lower end of the range. The VIX also surged more than 10% during the session, amid tensions over oil prices, with Brent trading above $100 per barrel on Monday.
