Valeo's Stock Jumps 9% and Leads the SBF 120
The automotive supplier leads the SBF 120 at mid-session, in a Parisian market that is otherwise trending downward. The stock has just crossed a closely watched technical threshold and has reached its highest level in nearly three years, extending a rally that began in early May.
Valeo's Shares Hit €15.35, Highest Since 2023, Breaking Resistance
Valeo's stock climbs 8.4% to €15.2350 at midday, leading the SBF 120, which in turn is down 0.27%. This movement validates the breaking of the resistance at €14.06, crossed during the session and now used as support. Over the month, the supplier has gained nearly 43%, and over 70% over the year. This surge continues the momentum triggered after crossing the 200-day moving average in early May, with the stock now trading more than 33% above this long-term benchmark. The RSI at 70 reflects the intensity of the rally and places the stock at the threshold of the overbought zone, with no reversal signal at this stage.
Short Sellers Reduce Their Bets as the Rally Extends
According to reviewed statements, seven funds cumulatively hold 11.35% of the capital sold short as of May 29. The bearish bet remains high in absolute terms, but has decreased by 2.32 points in a month, indicating that some participants have begun to cover their positions as the stock continues its rise. This partial disengagement movement is not a complete reversal of sentiment, but it accompanies the upward trajectory without contradicting it. In terms of valuation, according to the consensus of surveyed analysts, the stock is priced at about 9.4 times the earnings of the current fiscal year and 7.0 times those of the next fiscal year. On the operational front, the group has made multiple announcements in recent weeks, from being selected by a major Indian manufacturer for its ADAS VSS360 system to partnering with Zuken on an AI-enhanced electronic design platform. The next technical resistance now stands beyond the €15.35 reached today.
