Teleperformance Shares Drop 4.24% to €65.56 After Overbought Rally
Teleperformance shares fell sharply on Tuesday morning to €65.56, after recording one of the highest increases in the SBF 120 the previous day. The decline occurs as the RSI was in an overbought zone at the previous close. The stock is among the three largest declines in the broader index.
Significant Consolidation After Recent Rally
Teleperformance dropped 4.24% to €65.56 during the session, amidst a CAC 40 decline of 0.6% and an SBF 120 loss of 0.58%. The stock ranks 118th out of 120 in the broader index, behind Valneva and Soitec. This movement contrasts with the trend of the recent sessions: the stock is still up 10.3% for the week and 28.8% over three months, despite a year-on-year decline of 29.79%. The day before, the stock had surged by 5.76% to €67.16, entering an overbought zone. Today, the stock encounters resistance at €68.46, which corresponds to Monday's closing price.
Overheated RSI and Documented Selling Pressure
An RSI at 76 confirms the overbought configuration inherited from the recent rally. The price is at the upper end of the Bollinger Bands, at 97% of the width, just below the upper limit of €66.14. However, the stock remains above its three moving averages: MM20 at €57.34, MM50 at €53.56, and MM200 at €60.19. The capitalistic context provides further insight: net short positions reported to the AMF reach 12.24% of the capital, distributed among 11 funds, with Marshall Wace (2.53%), Point72 (1.82%), and Citadel (1.54%) leading. Nevertheless, this stock has decreased by 0.97 points over thirty days. Based on the consensus of twelve analysts, the stock trades at about 4.9 times the expected earnings for the current fiscal year, compared to an average of 18.4 times for the Industrials sector. The next meeting for shareholders is the general assembly scheduled for May 21, followed by the dividend detachment on May 26.
