TotalEnergies Shares Drop by 4%, the Worst Performer in a Rebounding CAC 40
The French oil major tumbles mid-session, weighed down by a drop in crude oil prices following de-escalation signals in the Middle East. The stock breaks through a closely watched technical support as the CAC 40 soars, in a marked sectoral pivot.
A 4% Drop Isolates TotalEnergies in an Euphoric CAC 40
TotalEnergies shares fall by 4.09% to €74.81, marking the steepest decline in the CAC 40, which nonetheless gains 1.86% to 8,353 points. The contrast is striking at the top of the board, where Société Générale, Stellantis, and Kering are up more than 5%. The downturn originates from the crude market: Brent crude plummets by 5.17% to $88.29/barrel following Donald Trump's announcement of the cancellation of planned strikes against Iran and the mention of a possible peace deal this weekend.
This retreat erases some of the geopolitical risk premium built up over the past weeks. The sector takes a collective hit: Shell drops 3.38% in London. The session highlights the French oil company's sensitivity to barrel price fluctuations, as previously documented by a similar geopolitical trading shift at the end of May.
The €75.18 Support Breached During the Session, with the MM200 Still a Distant Cushion
The decline breaches the €75.18 support, broken in the morning, with the stock touching €74.62 before a slight rebound to €74.81. This break occurs as the price significantly falls below its 20 and 50-day moving averages (around €77.60, a gap of approximately -3.6%), indicating a reversal in short-term momentum. The RSI at 52 remains neutral, reflecting a sharp but not extreme movement, while the MM200, at €63.22, is well below the current price, which is about 18% higher.
Over one year, the performance remains close to 40%, and the stock trades at about 7.6 times the expected earnings for the current fiscal year according to the consensus of surveyed analysts. Traders will keep an eye on Brent's movements in the coming sessions to determine if the €75 zone turns into new resistance or if a technical rebound kicks in.
