Teleperformance stock drops 2.5% and hits resistance at €72
Wednesday, September 2 session turns into a correction for Teleperformance, which declines sharply while the SBF 120 remains nearly stable. The stock briefly broke through its resistance level intraday before retreating, a sign that resistance is holding for now.
A marked decline following a failed resistance breakthrough during the session
In mid-afternoon, Teleperformance falls 2.39% to €70.28, ranking among the largest declines of the SBF 120. Today's configuration is telling: the stock rose to €72.20, briefly breaking through its €72 resistance, before retreating below this level. This quick reversal illustrates the stock's difficulty in establishing itself durably above this threshold, tested upwards as early as Tuesday's session.
The previous day, the stock had already closed without managing to consolidate this breakthrough, and Wednesday's session confirms the resistance of this €72 ceiling. The price thus returns to contact with the MA20 at €69.99, a margin of only 0.41%, making it an immediate threshold to monitor for the rest of the session. Down 1.01% on the week, Teleperformance nonetheless remains up more than 9% over three months, bearing the mark of a rebound that began in spring.
Short sellers still well-positioned despite significant decline over one month
In terms of institutional positions, short selling remains a factor to consider when analyzing the stock. According to reported declarations, six funds collectively hold 7.69% of capital sold short, a high level that signals significant-sized operators are betting on a decline. This figure nonetheless represents a notable reduction compared to thirty days ago, when the cumulative figure reached 10.86%: institutional downward pressure is therefore easing, without having disappeared.
This configuration — substantial but declining short interest — may partly explain the volatility of the stock around technical levels such as €72. Furthermore, according to the consensus of surveyed analysts, the stock is trading at around 5.2 times expected earnings for the current fiscal year, with earnings per share growth expected at +4.5% the following fiscal year. In a context of European market pressure (the DAX is down more than 1% during the session), the €72 resistance remains the threshold to watch to measure the stock's ability to resume its upward momentum.
