Vallourec shares fall nearly 3%, weighed down by Brent decline
Vallourec records a sharp decline at the end of trading this Thursday, against the grain of a rising SBF 120, in a context where Brent loses ground after several days of surge. The security, propelled up more than 4% the previous day, returns part of its gains and reverts to a more challenging technical configuration.
A decline that places the security below its 50-day moving average, while resistance held
The Vallourec security declines 2.96% during the session, to €19.31, and ranks among the sharpest declines of the SBF 120. Resistance at €19.90 was well tested: the security briefly broke through it during the session, rising to €19.92, before falling back below this threshold. This reversal illustrates the difficulty in consolidating above this level, already touched during the gains of more than 4% recorded the previous day.
The price falls back below the 50-day moving average at €19.41, with a gap of -0.52%, while it remains above the 20-day moving average at €18.45 (gap +4.66%). The RSI at 62 remains in positive territory without signaling overbought conditions, which leaves the configuration suspended between the two moving averages. The decline in Brent below $104 (at $103.79 per barrel during the session, or -1.93%) weighs on the security's momentum, which is directly exposed to oil price movements.
A favorable analyst opinion and short positions that doubled in one month
CIC Market Solutions maintained its buy recommendation on Vallourec on Wednesday, with an unchanged price target of €28.00. Relative to the current price of €19.31, this target represents an upside potential of approximately 45%. This analyst conviction contrasts with the momentum of short positions: according to filings reviewed, three funds cumulatively hold 1.96% of capital sold short, a proportion that has nearly doubled in thirty days (compared to 0.95% one month earlier).
This rapid progression of 1.01 percentage points signals a rise in institutional downside pressure, without however reaching levels likely to significantly disrupt trading. Over the longer term, the security is still up +23.5% over one year, which recalls the amplitude of the quarterly decline of -17.76% initiated since the summer. The support level at €17.59 remains the next level to watch if pressure continues.
