Sanofi Shares Remain Under Pressure and Far from Long-Term Moving Averages
In the mid-afternoon, the pharmaceutical company is making no progress while the Paris stock market shows significant gains. The stock continues to suffer from a negative trend that has lasted several months, despite favorable regulatory news from the United States last week.
Sanofi Stalls as the CAC 40 Rises Nearly 0.5%
Sanofi's stock remains unchanged at €75.29 in mid-afternoon trading, while the CAC 40 is up 0.44% at 8,219.36 points. The company ranks 24th out of 40 index values, far from the day's top gainers (Dassault Systèmes, Capgemini), which are buoyed by technology. Over the week, the stock has lost 2.07% and has fallen 8.41% over three months.
Over a year, the loss reaches 13.97%, notably following a downgrade by Morgan Stanley in early May that led the price to a six-year low of €71.73 on May 12. Last Thursday, the FDA granted priority review to venglustat for type 3 Gaucher's disease, a decision detailed on May 28, which has not triggered a lasting rebound.
The Stock Struggles with Its 20-Day Moving Average at €75.17 and Remains Below Its Long-Term Averages
From a technical perspective, Sanofi is trading at its 20-day moving average, at €75.17 (a +0.16% difference). However, the stock remains significantly below its 50-day moving average at €78.24 (a -3.77% gap) and its 200-day moving average at €81.60 (a -7.73% gap), indicating a persistently bearish medium-to-long-term trend. The RSI at 45 is in a neutral zone, without any extreme signals.
The support at €72.72 remains the defensive area to watch, while the resistance at €82.03 marks the upper limit. Based on the consensus of surveyed analysts, the stock is trading at approximately 8.9 times the earnings for the current fiscal year, a multiple significantly compressed by the stock's market troubles. The next technical milestone for the stock involves reclaiming the 50-day moving average, which paves the way towards the €82 resistance.
