Dassault Aviation Shares Rebound with 2.12% Gain
Shares of French aerospace company Dassault Aviation, renowned for manufacturing the advanced Rafale fighter jets, experienced a positive turnaround during Thursday's trading session on November 20. The stock successfully broke its two-day declining trend, registering a notable increase of 2.12% to reach 278.80 euros on the Paris Stock Exchange.
This recent performance continues an impressive upward trajectory for the defense manufacturer, which has seen its stock value climb nearly 40% over the past year. Analysis of the company's monthly performance reveals positive growth in seven out of the eleven months of 2025, with March emerging as the strongest month with an exceptional 24% surge.
The current trading pattern for November shows relatively stable movement with a slight positive inclination. Dassault Aviation shares have demonstrated significant volatility throughout the year, hitting a 52-week peak of 332.20 euros while also touching a low of 185.30 euros during the same period.
Historic Ukraine Defense Agreement Boosts Prospects
The recent stock momentum aligns with a groundbreaking development in international defense cooperation. Ukrainian President Volodymyr Zelenskiy has secured a preliminary agreement with France for the acquisition of up to 100 Rafale fighter jets produced by Dassault Aviation.
This strategic move represents Ukraine's increasing reliance on European defense suppliers to strengthen its aerial capabilities amid ongoing conflicts. President Zelenskiy characterized the agreement as "a special moment, really a historical one for both nations: France and Ukraine" in his social media announcement.
The comprehensive letter of intent, formalized during Zelenskiy's diplomatic visit to Paris on Monday, extends beyond fighter jets to include air defense systems, advanced radars, and drone technology. Market response to this announcement was immediately positive, with Dassault Aviation's stock experiencing an 8% surge following the revelation.
This substantial defense procurement initiative comes at a critical juncture as Russia intensifies its aerial assaults on Ukraine using missiles, drones, and glide bombs. The agreement outlines a ten-year implementation timeline, with each component subject to separate contractual arrangements according to Bloomberg reports.
Technical Analysis Points to Potential Breakout
Despite the renewed attention from the Ukraine defense deal, Dassault Aviation's stock currently trades substantially below its annual high point. Market experts, however, see promising technical indicators suggesting potential upward movement.
Anshul Jain, Head of Research at Lakshmishree Investment, observes that the current market structure indicates consistent accumulation patterns, potentially preceding a significant breakout. "Dassault Aviation is forming a seven-month flat base on the monthly chart, establishing a clean breakout structure," Jain explained.
He further noted that at the current market price of 276 euros, the stock's behavior suggests steady accumulation rather than distribution. "Daily and weekly volumes also reflect an accumulative tone, often a precursor to a strong breakout," Jain added.
The technical analysis identifies a critical resistance level at 310 euros, with a decisive breakthrough potentially propelling the stock toward the 375 euro target zone. This projection aligns with the measured movement anticipated from the base formation. Jain emphasized that "as long as accumulation continues at lower levels, the setup remains constructive for an upside breakout."
Disclaimer: This analysis serves educational purposes exclusively. The opinions and investment recommendations expressed belong to individual analysts or brokerage firms and do not represent Mint's views. Investors should consult certified experts before making investment decisions, considering rapidly changing market conditions and individual circumstances.
