Vallourec stock benefits from Brent surge above 97 dollars
Vallourec advances significantly during trading, bucking the trend of a slightly lower SBF 120, amid a surge in Brent crude above 97 dollars per barrel against the backdrop of military tensions in the Gulf. The rebound pushes the stock above its 20-day moving average, a threshold recently reclaimed after several weeks of downward pressure.
Vallourec gains altitude and surpasses its MM20 as Brent surges
Vallourec gains 2.37% during trading at €19.00, ranking among the strongest gainers of the SBF 120 while the Parisian index falls 0.14% and the CAC 40 retreats 0.26%. This rebound occurs in a context of a crude oil surge: Brent advances more than 5% to settle above 97 dollars per barrel, driven by the military escalation between Iran and the United States around the Strait of Hormuz. The seamless tube manufacturer, directly exposed to oil and gas activity, mechanically benefits from this upward dynamics in crude oil prices.
Over the week, the stock shows a gain of 7.04%, which contrasts with a decline of 8.7% over the past month and a retreat of 22.92% over three months. Today's movement pushes the stock above its MM20 at €18.21 (difference of +4.34%), a level that recent reports identified as a reference threshold after several weeks of absence. The MM50, at €19.70, remains 3.55% above the current price, as does the MM200 at €20.04, or a difference of 5.19%: the stock has not yet crossed these two medium-term moving averages.
A neutral RSI and a support at 17.59 € that defines the monthly technical floor
The RSI at 47 remains neutral, neither oversold nor overbought, reflecting an open configuration on both sides following the rebound of recent sessions. This level is consistent with recent weekly progress: less than a month ago, the RSI was approaching the oversold zone at 33, a sign that selling pressure has gradually eased. The MACD, still in negative territory with a line at -0.39 €, nevertheless shows a positive histogram at 0.16, indicating that the gap between the MACD line and the signal line is narrowing upward, which technically supports the ongoing rebound.
The support identified at 17.59 € defines the floor to monitor in case of a reversal, while the resistance at 22.11 € represents the next major obstacle in case of continuation of the upward movement, representing an upside potential of approximately 16% compared to the current price. In this context, geopolitical tensions around the Strait of Hormuz and their impact on oil prices remain the dominant variable for a company whose activity is closely linked to exploration and production demand.
