Vallourec stock climbs over 4%, buoyed by Brent above $108
Vallourec posted one of the best performances on the Paris stock exchange on Wednesday, propelled by an analyst opinion confirmed on the same day and Brent soaring above 108 dollars. The stock breaks above its intraday resistance level and clearly moves back above its short-term moving averages, against a backdrop of persistent geopolitical tensions in the Middle East.
CIC Market Solutions confirms buy rating and targets €28 on Vallourec
CIC Market Solutions reiterated its buy rating on Vallourec on Wednesday, maintaining a price target of €28. Based on the latest price of €19.53, this level implies an upside potential of nearly 43%. This analyst opinion comes as the stock is already performing well during the session, advancing 4.41% in morning trading at €19.53, ranking among the strongest gainers on the SBF 120.
Brent, at $108.08 per barrel during trading, remains fundamental support for the tube manufacturer serving the oil and gas industry, particularly as persistent geopolitical tensions in the Middle East — closure of the Saudi East-West pipeline following a drone attack, disruptions in the Strait of Hormuz — maintain a high risk premium on crude. Over a rolling one-month period, after moving below its moving averages at the start of the week, the stock now shows a gain of nearly 8%, although the three-month decline remains significant at over 19%.
A resistance breakout supported by regained moving averages
From a technical standpoint, the clearest signal of the session remains the upside breakout above the €19.31 resistance level, now surpassed, with the latest price at €19.53. The stock is trading above the MA20 (€18.36, spread of 6.35%) and has just moved back above the MA50 (€19.42, spread of 0.54%), thresholds that were lost during Monday's decline. Only the MA200, at €20.16, remains slightly above the current price, representing a gap of 3.15% to close. The RSI at 50 reflects a balanced configuration, without excess in either direction.
Furthermore, according to available filings, three funds cumulatively hold 1.96% of capital sold short, showing strong progression over one month (+1.01 points compared to 0.95% thirty days ago): this rapid rise in bearish bets, even though the absolute level remains moderate, warrants monitoring over time without overstating its significance. The MA200 at €20.16 represents the next reference level to confirm the strength of the ongoing rebound.
