Airbus, Leonardo and Thales: Europe targets space with Project Bromo
By Ion Jauregui – Analyst at ActivTrades
The planned agreement between Airbus (EPA: AIR), Leonardo (BIT: LDOF), and Thales (EPA: TCFP) to merge their satellite divisions under Project Bromo represents a far-reaching strategic move for the European aerospace sector. The goal is to challenge giants such as SpaceX/Starlink and Chinese state programs, while strengthening the European Union’s strategic autonomy in a key industry. For Airbus, a leader in defense and space, this step would expand its diversification beyond commercial aviation, consolidating its role as a benchmark in satellites and secure communications. Leonardo would benefit by expanding its footprint in a high-growth market, while Thales contributes its expertise in electronics and cybersecurity, essential for satellite applications. If the timeline is met, with a framework agreement in 2024 and final closing in 2025, Europe will have a space champion capable of competing on a global scale.
Technical analysis of Airbus (Ticker AT: AIR)
Airbus shares remain in a long-term uptrend that began in October 2022, moving within an ascending channel that has consistently respected the 200-day moving average. On Thursday, the stock hit a new high at €195, before closing Friday at €193.66, after firmly breaking through the key resistance of €186.92. The long-term outlook points to a continuation toward the €200 level.
At the start of the week, a corrective move cannot be ruled out, potentially testing the breakout zone from last Tuesday. Moving average crossovers maintain a strong configuration, supporting the continuation of the main trend. In the short term, the RSI stands at 68.54%, close to overbought territory, which increases the likelihood of a technical pullback. In contrast, the MACD remains in an expansionary bullish phase, with the signal line above the histogram in positive territory, confirming strong momentum and directionality.
The ActivTrades Europe Market Pulse currently reads 2.5, leaning toward risk-on, though still with a neutral-mixed bias, reflecting cautious buying appetite in European markets. The point of control (POC) sits at €162.44, in line with the 50-day moving average, serving as a key support level. In the event of a correction, €173.54 and €168.24 stand as intermediate supports. Conversely, if the price holds above the current breakout, Airbus would enter free upside, with the next psychological target set at €200 in the short term.
Bromo vs. SpaceX-Starlink
Airbus is at a critical technical juncture: the recent breakout has reinforced its bullish bias, but proximity to overbought levels suggests possible short-term adjustments. Fundamentally, Airbus maintains a robust order book, supported by the recovery of global air traffic and rising demand for fuel-efficient aircraft. Furthermore, its participation in strategic European defense and satellite initiatives such as Project Bromo strengthens its diversification and competitive stance against U.S. rivals that currently dominate the market. These factors underpin its current valuation and provide additional support to the bullish outlook reflected in the technical picture.
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The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance and forecasting are not a synonym of a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk. Political risk is unpredictable. Central bank actions can vary. Platform tools do not guarantee success.
By Ion Jauregui – Analyst at ActivTrades
The planned agreement between Airbus (EPA: AIR), Leonardo (BIT: LDOF), and Thales (EPA: TCFP) to merge their satellite divisions under Project Bromo represents a far-reaching strategic move for the European aerospace sector. The goal is to challenge giants such as SpaceX/Starlink and Chinese state programs, while strengthening the European Union’s strategic autonomy in a key industry. For Airbus, a leader in defense and space, this step would expand its diversification beyond commercial aviation, consolidating its role as a benchmark in satellites and secure communications. Leonardo would benefit by expanding its footprint in a high-growth market, while Thales contributes its expertise in electronics and cybersecurity, essential for satellite applications. If the timeline is met, with a framework agreement in 2024 and final closing in 2025, Europe will have a space champion capable of competing on a global scale.
Technical analysis of Airbus (Ticker AT: AIR)
Airbus shares remain in a long-term uptrend that began in October 2022, moving within an ascending channel that has consistently respected the 200-day moving average. On Thursday, the stock hit a new high at €195, before closing Friday at €193.66, after firmly breaking through the key resistance of €186.92. The long-term outlook points to a continuation toward the €200 level.
At the start of the week, a corrective move cannot be ruled out, potentially testing the breakout zone from last Tuesday. Moving average crossovers maintain a strong configuration, supporting the continuation of the main trend. In the short term, the RSI stands at 68.54%, close to overbought territory, which increases the likelihood of a technical pullback. In contrast, the MACD remains in an expansionary bullish phase, with the signal line above the histogram in positive territory, confirming strong momentum and directionality.
The ActivTrades Europe Market Pulse currently reads 2.5, leaning toward risk-on, though still with a neutral-mixed bias, reflecting cautious buying appetite in European markets. The point of control (POC) sits at €162.44, in line with the 50-day moving average, serving as a key support level. In the event of a correction, €173.54 and €168.24 stand as intermediate supports. Conversely, if the price holds above the current breakout, Airbus would enter free upside, with the next psychological target set at €200 in the short term.
Bromo vs. SpaceX-Starlink
Airbus is at a critical technical juncture: the recent breakout has reinforced its bullish bias, but proximity to overbought levels suggests possible short-term adjustments. Fundamentally, Airbus maintains a robust order book, supported by the recovery of global air traffic and rising demand for fuel-efficient aircraft. Furthermore, its participation in strategic European defense and satellite initiatives such as Project Bromo strengthens its diversification and competitive stance against U.S. rivals that currently dominate the market. These factors underpin its current valuation and provide additional support to the bullish outlook reflected in the technical picture.
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance and forecasting are not a synonym of a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk. Political risk is unpredictable. Central bank actions can vary. Platform tools do not guarantee success.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.