Soitec stock rebounds nearly 3% after its 14% fall
After the sharp correction of the previous day, Soitec gains ground this Tuesday and ranks among the best performers in its index, in an SBF 120 that gives up slight ground. The rebound occurs in a market context under tension, marked by the prospect of a rate hike by the Federal Reserve and American bond yields beyond 5%.
A 3% rebound that places Soitec above its key moving averages
Soitec gains 2.96% during the session at €127.05, after closing at €123.40 the previous day. The stock thus regains ground following the decline of more than 14% recorded on Monday, which had made the stock the worst performer in the SBF 120. This rebound clearly repositions it above its 20-day MA at €121.01 (spread of nearly 5%) and its 50-day MA at €113.24 (spread of more than 12%), two levels that confirm that the underlying bullish momentum remains structurally intact despite the high volatility of recent sessions.
The RSI at 50 is established in neutral territory, without oversold or overbought signals, which leaves the configuration open in both directions. Resistance at €146.35 remains the objective to reclaim to validate a sustainable recovery, while support at €107.85 constitutes the reference floor in case of a new decline.
Extreme valuation and tense macro context amid Federal Reserve decision
This rebound fits into a spectacular bullish dynamic since the beginning of summer: the stock shows more than 300% gains over one year, driven in particular by the upward revision to approximately 50% of the revenue growth forecast for Q2, announced in early September, which had triggered an exceptional rally. The valuation reached remains nonetheless very high: according to the consensus of analysts covered, the stock trades at approximately 184 times current fiscal year earnings, a multiple that reflects very ambitious growth expectations. Furthermore, Tuesday's session occurs in a particularly tense macro context: financial markets anticipate at nearly 90% a 25 basis point rate hike by the Federal Reserve by Wednesday, while 10-year Treasury yields have breached the 5% threshold, a level unseen since late 2023.
This rise in long-term rates increases the discount rate cost for high-multiple growth stocks, a structural pressure weighing on the entire technology sector and from which Soitec, with its stretched valuation, is not exempt. Over one month, the stock still declines 1.66%, reflecting the turbulence of this extreme volatility cycle.
