Viridien share retreats below its 20-day moving average as Brent jumps 5%
The stock declines on Wednesday as European markets trade in the red, against the backdrop of military escalation between Iran and the United States driving Brent crude up more than 5% during the session. Viridien's technical configuration remains in precarious balance, following two sessions of strong gains last week.
A moderate pullback in a Paris market under geopolitical pressure
Viridien falls 1.53% to €90.25 in trading, while the SBF 120 loses 0.34% and the CAC 40 declines 0.30%. The market context is clearly bearish: Iran launched a military retaliation on Wednesday against several American installations in the Middle East, targeting bases in Jordan, Iraq and Bahrain. This escalation propels Brent to $95.40 per barrel, up 5.43% during the session, which sends a mixed signal for Viridien: while crude price gains mechanically support exploration demand, it also intensifies risk aversion in the markets.
The group had nevertheless posted two sessions of strong gains the previous week, including a jump of nearly 5% on Tuesday, driven by Goldman Sachs' initiation of coverage with a buy recommendation and a price target of €118, representing an upside potential of approximately 31% compared to the current price. Over a seven-day rolling period, the stock still shows a gain of 5.25%, which puts today's pullback into perspective.
Short positions sharply higher over one month, the 20-day moving average back above the price
From a technical analysis standpoint, the price edges slightly below the 20-day moving average at €90.73 (difference of -0.53%), a level it had crossed upward during last week's rebound. The 50-day moving average remains below at €85.48, providing a cushion of 5.58% beneath the current price. The RSI at 56 remains in neutral territory, showing neither overbought nor bullish exhaustion signals, leaving momentum open in both directions. Resistance at €99.40 represents the next significant level to overcome. Moreover, according to filed disclosures, cumulative net short positions on Viridien reach 6.50% of capital, distributed among eight funds, up 1.65 percentage points over one month (compared to 4.85% thirty days ago).
This elevated level reflects persistent institutional selling pressure: several players are betting on a continuation of the decline, although their precise motivations remain unclear. It should be noted that over three months, the stock still shows a decline of 26.27%, despite the recent rebound, illustrating the extent of the ground still to be covered to erase the correction suffered since spring. The first-half results published on July 30 had shown revenue down 22%, offset by a marked improvement in cash flow, on which the company had confirmed its target of generating net cash flow of 100 million dollars for 2026 (upon publication of Q1 2026 results on May 5, 2026). Monitoring of the €90.73 (20-day moving average) threshold in the coming sessions will provide an indication of the stock's ability to stabilize its recent rebound.
