Valeo share declines 2%, among the sharpest falls on the SBF 120
Despite a brief breach of its technical resistance level during the session, Valeo fails to hold the highs and retreats in early afternoon, going against the grain of a well-oriented Paris market. The pullback places the automotive supplier among the sharpest declines on the SBF 120, against a backdrop of seller positions that remain very elevated in the capital.
A failed resistance breakthrough that pushes the security back below €15
During the session, Valeo briefly broke above its resistance at €15.07, pushing its price to a peak of €15.09, before retreating to trade at €14.75, representing a decline of 2.09% compared to the previous close. This pullback contrasts with the overall tone: the CAC 40 gains 0.66% during the session and the SBF 120 advances 0.62%. The security nonetheless remains solidly anchored above its moving averages, with a gap of 8.22% above the 20-day MA (€13.63) and 7.43% above the 50-day MA (€13.73).
The RSI at 65, without reaching the overbought zone, confirms that the bullish momentum initiated since the publication of half-yearly accounts retains its vigor, even if the security stalls at this first resistance level. Performance remains remarkable over the longer term: Valeo displays a gain of more than 38% over three months.
Seller positions at their peak and fundamentals in the process of normalization
According to declarations consulted, seven funds cumulatively hold 9.74% of Valeo's capital in net short positions, a particularly elevated level that reflects persistent skepticism from a portion of institutional investors regarding the security. This downward pressure has eased slightly: the cumulative figure stood at 10.17% thirty days ago, representing a relief of 0.43 percentage point. Such a massive short can amplify movements in both directions, without making it possible to deduce a precise direction. On the fundamentals side, the first-half 2026 accounts published on 22 July had shown an operating margin rising to 5.0% and a free cash flow of 242 million euros, accompanied by a reaffirmation of annual targets.
The equipment supplier had also announced the early repayment of 750 million euros of bonds scheduled for 24 August 2026, an operation that illustrates the improvement in the balance sheet structure. According to the consensus of analysts tracked, the security trades at approximately 9.6 times the earnings expected for the current fiscal year, a level that reflects the uncertainties still weighing on the sector, in particular the geopolitical and macroeconomic environment — a risk identified by the group when publishing its half-yearly results. The next identifiable catalyst remains the sustained breakthrough of the €15.07 resistance, with Thursday's failed test drawing the next technical battle.
