Vallourec stock rebounds 2.5%, supported by Brent above $106
Vallourec gains nearly 2.5% during trading, bucking a slightly negative SBF 120, and ranks among the index's best performers. The rebound occurs as Brent trades above $106 per barrel, amid ongoing geopolitical tensions in the Middle East, and as short positions on the stock have risen significantly over one month.
A rebound that places Vallourec above its 20-day moving average, in a supportive oil context
Vallourec is trading at €18.72 during the session, up 2.49% compared to Monday's close of €18.26. This gain erases yesterday's decline and places the stock above its 20-day moving average (€18.33), with a positive spread of 2.10%. The two other moving averages remain nonetheless above the current price: the 50-day MA is at €19.45 (approximately 3.78% above current price) and the 200-day MA at €20.14 (approximately 7.08% above), which maintains medium-term downward pressure.
Brent is trading at $106.09 per barrel this Tuesday afternoon, posting a modest gain during the session. The oil price has jumped nearly 8.7% over the past seven days, supported by geopolitical tensions in the Middle East, particularly the attack on the Saudi East-West pipeline and the tightening of maritime routes in the Red Sea. Vallourec, a manufacturer of tubes for the oil and gas industry, directly benefits from this context.
Over one month, the stock gains 3.46%, although the three-month performance remains decidedly negative, at -23.95%. The RSI at 44 is in neutral territory, without any particular technical signal in either direction.
Agreement with Aramco and short positions surging significantly over one month
On the front of recent developments, the new agreement signed with Aramco for the supply of OCTG tubes, finalized on September 9 as part of the Franco-Saudi roundtable in Paris, extends a commercial relationship dating back to 1962. Additionally, the construction of a production line dedicated to subsea isolation technology at the Brazilian Serra site, under ExxonMobil license, illustrates the group's geographic and technological diversification.
Parallel to this rebound, net short positions on Vallourec have increased sharply: three funds cumulatively hold 1.96% of capital sold short according to filed declarations, compared to 0.95% thirty days ago, representing a rise of 1.01 percentage point over one month. This notable acceleration indicates that institutional investors have amplified their downside bets on the stock during the period, although the absolute level remains below thresholds generally associated with pronounced market stress. This point warrants monitoring as the oil context evolves. The next resistance level to watch is at €19.31, a threshold the stock should break through to consolidate its return above its main moving averages.
