LVMH Moët Hennessy Louis Vuitton is the world’s largest luxury goods conglomerate. Founded in 1987 through a merger, the French multinational owns prestigious brands across the fashion, wines, perfumes, watches, and jewelry sectors, including Louis Vuitton, Christian Dior, and Dom Pérignon. LVMH exemplifies craftsmanship, innovation, and timeless elegance. The company recorded revenue of €42.2 billion in the first half of 2023, up 15% YoY. Organic revenue growth was 17% compared to the same period in 2022. Profit from recurring operations for the first half of 2023 was up 13% at € 11.6 billion, and the operating margin reached 27.4% of revenue. Group share of net profit was up 30% YoY at €8,5 billion.
MC.FR 1W Chart Analysis, September 5, 2023
LVMH (MC.FR) in a classic pullback.
The excellent financial results of the French giant are reflected in its upward trend. It has been happening for several years, although the chart shows the period since 2019. A good support for the trend seems to be the EMA100 marked in green. Apart from fakeouts from the COVID-19 panic and spring 2022, the price still respects it.
Bearish divergences are marked with diagonal pink lines, and bullish ones with light blue lines. They also turned out to be extremely helpful in determining the change in the direction of the medium-term trend. A similar situation applies to the crossovers on the MACD, which are marked with vertical lines. Death crosses have formed on the vertical pink lines and golden cross on the light blue line.
The continuation of the uptrend (started after the bullish divergence) very well respects the designated Fibo retracements. Level 0.5 (718) twice turned out to be a significant resistance – this time, it may turn out to be a strong support for the price. This theory might be confirmed by the current placement of the EMA100 (723) on this retracement. If the correction is to be continued, this level is crucial, and its achievement may initiate the end of the pullback.
What to look for now?
There are several places to look for signs of a return to a long-term uptrend. The RSI indicator should return above the 50 level, the MACD should show a golden cross, and the weekly candle should close above the EMA100 and the Fibo retracement of 0.5. An additional confirmation may be a bullish divergence on the RSI oscillator.
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