Eutelsat: After a Surge of More Than 30% in Five Days, the Stock Shows Signs of Waning

Impressive Technical Acceleration, but Signs of Overheating

By mid-session on Friday, May 22, Eutelsat Communications shares are down 3.5% at €3.699, after closing the previous day at €3.833. However, this decline is set against an exceptional upward trend: the stock has gained 31.26% over five sessions and more than 70% over three months. The movement crystallized on Thursday with a leap of over 17%, allowing the price to break past the resistance level of €3.02, which had contained several attempts since the end of April.

Currently, the stock is trading well above its moving averages, with the 50-day moving average at €2.52 and the 200-day moving average at €2.67. The RSI, at 78, indicates a clear technical overheat. The next resistance level, identified at €3.77, has not been sustainably breached, which explains the profit-taking observed this Friday.

Is it still worth investing in the stock?

The timing question becomes central. The release of the third quarter revenue 9M2025/2026 on May 12 confirmed the group's strategic reorientation: LEO activity increased by 50% year-on-year, justifying recent enthusiasm. However, this quarter also highlighted two caution points for investors: a negative exchange rate effect of 42 million euros during the period and the nearly stable revenue from operational activities.

Technically, the stock is hovering close to its resistance at €3.77, without breaking through, while the RSI signals a marked overbought situation. Friday's decline, which positioned Eutelsat among the biggest losers on the SBF 120 (while the index rose by 0.72% during the session), could herald a consolidation phase after a 38% increase over the year. The next anticipated event is the publication of the 2025-26 annual results on August 7, 2026. In the short term, the gap between the stock price and its moving averages suggests caution on the entry point.