Thales Stock: Leading the CAC 40, Targeting the Key Zone of €243-245
The defense electronics group's stock records the best performance of the CAC 40 at midday, while the Paris index trends downward. The rebound comes after several weeks of significant consolidation, bringing the stock back to closely watched technical thresholds.
Thales Leads the CAC 40, Supported by Aerospace and Defense
Thales is up 2.57% at €239.20 in mid-morning trading, leading the CAC 40, which has fallen by 0.33%. The group is ahead of STMicroelectronics (+2.16%), Airbus (+1.14%), and Safran (+1.04%), indicating that the aerospace and defense sectors are bolstering the Parisian market this morning. Over the week, the stock has gained 4.23%, continuing the movement that began on May 19 after a downward trend. Over three months, the performance remains negative (-6.16%), and the year-on-year return is still in the red (-10.38%). The rebound that started last week around €228 is thus confirmed at the end of May, in a favorable sectoral context for European defense.
The Stock Reapproaches its 50 and 200 Day Moving Averages
Today's rebound brings Thales just below its 50 and 200 day moving averages, located respectively at €243.04 and €244.55, representing a gap of about 1.6% and 2.2% from the current price. However, the stock has already crossed above its 20 day average (€229.14), breached during the mid-May rebound. The RSI at 49 has returned to a neutral zone, after entering oversold territory in early May which accompanied the breach of the €230 support level. The MACD remains in negative territory (-5.10) but its histogram has turned positive (+2.16), indicating a waning selling momentum. The €243-245 zone, where the two long averages converge, is now the next technical threshold to watch to confirm an exit from the bearish channel established over the past three months. The reference support remains at €219.40, a level that was not tested during the early month low.
