Vinci share breaks through its support level at €117.90 and extends its decline
The concessions and construction group is losing ground this Thursday, in a context of generally difficult market conditions for construction sector stocks. The downside breach of a key technical threshold marks a stage in the pullback that has been underway for several weeks, following Landesbank Baden-Württemberg's revision of its price target two days earlier.
The €117.90 support broken through, the stock returns to its lowest level in several months
The Vinci share is down 2.43% at €116.60 during the session, after closing the previous day at €119.50. The downside breach of the €117.90 support is the noteworthy event of the session: the stock remains well below this level and thus amplifies a pullback that has been underway for several weeks. Over one month, the loss stands at 1.48%; over three months, it reaches 6.04%.
The share is evolving in negative territory as the CAC 40 is down 0.97% during the session and the SBF 120 declines 0.89%. Vinci thus posts one of the most pronounced pullbacks in its sector, in a context where its construction sector peers are also facing notable pressures: Eiffage is down 5.70% and Bouygues is down 2.67% this Thursday. The RSI at 42, which remains in neutral territory but is approaching the lower boundary, reflects the selling pressure of the session without signaling extreme oversold conditions for the moment.
Landesbank lowers its target to €150 while moving averages weigh on the technical setup
On the analyst views front, Landesbank Baden-Württemberg revised its price target for Vinci on August 25, lowered from €155 to €150, while maintaining its buy opinion. Even adjusted downward, this target leaves a rebound potential of nearly 29% compared to the current price. The configuration of the moving averages weighs further on the technical picture: Vinci is trading below its 20-day MA at €122.31 (gap of 4.67%), its 50-day MA at €122.80 (gap of 5.05%) and its 200-day MA at €125.24 (gap of 6.90%), three moving averages that now form as many successive resistance levels.
Graphical resistance stands at €126.80. Furthermore, Cofiroute, Vinci's subsidiary dedicated to concessions motorways, placed on August 26 a bond issuance of 500 million euros at 6.4 years, an operation that testifies to the group's access to capital markets. The next monitored level remains the resistance at €126.80, which corresponds to the gap to be bridged relative to the moving averages.
