Ubisoft stock posts strongest SBF 120 gain in a market under pressure
The Breton publisher posted the strongest SBF 120 rally on Tuesday, in a market otherwise oriented downward. The rebound erases at once the decline recorded the previous day and places the stock back above its three moving averages, in a context of increased volatility in the markets.
A rebound that breaks through the 5.60 € resistance and recovers all moving averages
Ubisoft stock gains 5% during the session at 5.59 €, posting the strongest SBF 120 rally on Tuesday while the CAC 40 falls 0.86% and the SBF 120 declines 0.83%. The stock even broke through its resistance at 5.60 € upward during the morning, touching a high of 5.70 €, before easing slightly below. This breakthrough, even if temporary, confirms the strength of today's movement.
The price is now above the 20-day MA at 5.21 € (spread of 7.22%), the 50-day MA at 5.38 € (spread of 3.83%) and the 200-day MA at 5.10 € (spread of 9.53%), a configuration that the stock had not seen again for several weeks. Over a rolling week, the gain reaches 14.42%, and over three months, the stock gains 15.96%, substantially reducing the annual decline which still remains at -34.14%. The RSI at 53 moves in neutral territory, which leaves the bullish momentum intact without signaling overbought conditions.
High short positions at 12.50% of capital, in slight decline over one month
The increase occurs in a tense market environment: the VIX jumps 13.26% during the session, while the Federal Reserve is widely expected on Wednesday to raise its policy rates, with ten-year U.S. Treasury yields above 5%. This context weighs on risk assets in general, making Ubisoft's rebound all the more striking. Furthermore, according to filed disclosures, eleven funds cumulate 12.50% of Ubisoft's capital sold short, a structurally high level that testifies to persistent institutional selling pressure on the stock.
Over one month, this total has nevertheless declined by 1.11 percentage points (compared to 13.61% thirty days ago), reflecting a partial retreat of bearish positions without completely erasing them. Such a volume of short covering can indeed mechanically amplify rebounds: when short position holders repurchase to cover their exposure, they help accelerate the stock's rise. The resistance at 5.60 €, tested and briefly broken through today, remains the level to watch to gauge the solidity of the movement.
