Kering's Stock Climbs 2% and Challenges Its 200-Day Moving Average
The stock of Gucci's owner continues its recovery that began in May and rises above closely watched technical thresholds. The movement is part of a CAC 40 that is significantly on the rise, boosted by geopolitical easing in the Middle East. The stock is now approaching a key level that has capped the stock for months.
The Stock Reaches Its 200-Day Moving Average After a Monthly Rebound of Over 12%
Kering's stock gains 2.05% to €273.85 at midday, extending the momentum that started at the end of May after dropping below €232. The stock now shows a monthly increase of 12.53% and nearly 10% over the week, in a CAC 40 that is up by 0.96%. The rebound brings the stock directly in contact with its 200-day moving average, which stands at €274.92, after approaching it from below throughout the spring.
The breakthrough is not yet secured (a gap of -0.39%), but the price now clearly exceeds its 20-day (€249.66) and 50-day (€249.18) moving averages, with a lead of nearly 10% on each. The RSI at 64 reflects this bullish momentum without yet tipping into overbought territory, while the MACD remains positively oriented with a histogram at 1.53. Over one year, the performance amounts to more than 59%, highlighting the extent of the recovery after the spring's low points.
Luxury Sector Benefits from Easing on Brent and a Supportive Market Environment
The European luxury sector regains its luster this Monday, thanks to the framework agreement announced between Washington and Tehran foreseeing the gradual reopening of the Strait of Hormuz. Brent crude falls about 4% to around $83.6 a barrel, which eases inflationary pressure and supports the appetite for European cyclical stocks. The DAX is up 1.26%, while the Nikkei closed with a nearly 5% increase.
The sector's situation remains mixed, however: jewelry sales in China dropped by 21.3% year-on-year in April, according to NBS data, which maintains caution over the group's Asian exposure. In terms of valuation, the stock is trading at about 41.2 times the expected earnings for the current fiscal year and 27.6 times those of the following year, according to the consensus of surveyed analysts.
