TotalEnergies Shares Climb 1.5% to Take Second Place in the CAC 40
The French oil major rises during the session among the top performers of the CAC 40, driven by a surge in oil prices due to geopolitical tensions. The movement comes after several challenging sessions that had brought the stock below its short-term moving averages. Additionally, two brokerage houses have adjusted their targets on the stock.
A Rebound Supported by the Brent Surge and Geopolitical Tensions
TotalEnergies shares gain 1.6% to €72.28, placing it second in the CAC 40, behind STMicroelectronics. The movement accompanies a sharp increase in Brent, which jumps 3.22% to $90.94 a barrel, showing nearly a 20% rise over nine sessions. The Houthi rebels announced on July 20 the establishment of a naval blockade at the Bab el-Mandeb Strait, through which over 3 million Saudi barrels per day are transported to Asia.
Simultaneously, the ongoing conflict between the United States and Iran continues to impact crossings at Ormuz, with a decline of about 50% in traffic last week according to S&P Global Energy. This context breathes new life into the stock, which remains down by 2.86% over three months despite a nearly 36% gain over a year. Today's rebound partially offsets last week's decline when the stock broke its support at €70.34.
Technical Setup Deteriorated Before the Semi-Annual Results on July 23
Despite today's rise, the technical configuration remains fragile. The price is below its MM20 (€74.92) with a gap of 3.52%, and below its MM50 (€76.49) at a distance of 5.50%, while the RSI at 31 indicates a dynamic close to overselling. Only the MM200, at €64.00, still offers a comfortable cushion of nearly 13%. The threshold of €70.34, briefly breached last week, now serves as the first low reference point.
Regarding analyst opinions, RBC Capital confirmed yesterday its outperform rating by raising its target to €85, while Jefferies maintained its buy rating by lowering its target from €93 to €88. Based on the consensus of analysts surveyed, the stock is trading at about 7.5 times the earnings expected this year. The major will publish its second quarter and first half 2026 results on July 23.
