Solvay Shares Fall 2.44%, Among the Biggest Declines in the SBF 120
The Belgian chemical company significantly declines at mid-session in a downward trending Paris market. The Belgian chemical company significantly declines at mid-session and is among the biggest losers in the SBF 120, erasing part of its early-week rebound linked to the rare earth agreement.
Solvay Moves Below Its Three Moving Averages, Approaching Support at €25.30
Solvay shares drop 2.44% to €25.58, among the steepest declines in the SBF 120 which is down by 0.51%. The stock ranks low today, following the trail of Imerys, Arkema, and Forvia, all penalized in the session.
The price has fallen below its three moving averages: MM20 (€26.20, gap -2.37%), MM50 (€26.87), and MM200 (€26.96, gap -5.12%). This configuration indicates a loss of momentum in both the short and medium term.
The decline brings the stock closer to the identified support threshold at €25.30, about 1.1% from the current price. The RSI at 48 remains neutral, indicating that today's drop has not yet moved into oversold territory.
Today's Movement Corrects the Rebound Begun in Late May
Today's movement corrects the rebound that began at the end of May. The stock had gained nearly 4% on June 1st following the signing of a memorandum of understanding with Viridis Mining and Minerals on rare earths, with deliveries expected to start in 2028.
In today's session, the macro environment weighs on European cyclical stocks. The CAC 40 is down 0.54% and the DAX loses 0.76%, in a context of a dollar at a two-month high following a strong US employment report and increased likelihood of a Fed rate hike.
Over the year, the stock has declined by 10.81%. The support threshold at €25.30 will be the next technical marker to watch.
