Vallourec stock among the SBF 120's sharpest declines, short positions rise
Vallourec declined on Tuesday in an almost stable SBF 120, standing out against the current of a Paris index that is progressing slightly. The pullback brings the stock to the level of its 20-day moving average, in a technical configuration that warrants attention after several weeks of high volatility.
A pullback that brings the stock back to its 20-day MA, below the 50-day MA
Vallourec lost 1.65% during the session at €18.82, while the CAC 40 gained 0.12% and the SBF 120 advanced 0.14%. The stock thus ranks among the sharpest declines in the broader index, contrary to the positive momentum displayed over one month (+5.94%) and over one year (+15.01%). The price is now at the level of the 20-day MA at €18.85 (gap of only -0.19%), a threshold that acts as a short-term pivot. Below, the 50-day MA at €19.11 is moving slightly further away, confirming that the stock has slipped below this intermediate reference with a gap of -1.54%.
The RSI at 52 remains neutral, showing no oversold or overbought signals, which does not reflect marked directional exhaustion at this stage. The support at €17.59 remains far below the current price, while resistance at €19.90 constitutes the next upside hurdle, a level that had been tested during the bullish sequence of September 24. The September 24 session, when Vallourec ended at the top of the SBF 120 in a declining index, underscores how much the stock can experience large movements in a short time.
Short positions rise significantly, a signal to monitor on the fundamentals
On the fundamental side, one element deserves attention: net short positions declared on Vallourec have increased sharply over the past month. According to reported declarations, four funds now hold 2.56% of capital sold short, compared with 0.95% thirty days ago, representing an increase of 1.61 percentage points. This rapid progression over one month reflects mounting pressure from institutional investors who anticipate, for reasons of their own, a potential decline in the stock price.
It does not prejudge the future course of the stock price, but it comes in a context where Vallourec is trading at -7.77% over three months, following a choppy trajectory notably marked by the signing of an agreement with Aramco in early September and by a €200 million share buyback program executed at approximately 49% by the end of May. The first technical level to watch remains the 20-day MA at €18.85, a clear break below which would open the way to less well-supported zones before the support level at €17.59.
