LVMH Stock Declines 2.83% After Recent Rally
LVMH shares closed the Thursday session on October 9 at €559.20, down 2.83% from the previous day's trading at €575.50. This decline follows a period of significant gains, with the stock still up 6.72% over the past seven days and 15.86% over three months. Trading volumes remained moderate, accounting for 0.11% of the capital, indicating contained activity despite recent volatility. Over the past year, the performance remains negative with a decline of 14.69%, whereas the CAC 40, which lost 0.23% this Thursday, has gained 6.91% over twelve months.
Technical Correction Amid Positive Analyst Revisions
This technical correction occurs as two major banks have recently upgraded their views on the stock. Deutsche Bank upgraded to a buy rating this Thursday with a price target set at €635, while Morgan Stanley had already moved to a positive recommendation two days earlier, also setting a target at €635. These revisions come in a challenging sector environment for luxury goods, characterized by a slowdown in demand, particularly in Asia. However, both institutions anticipate a gradual recovery in sales from 2026, supported by creative initiatives and enhanced cost management within the group.
Short-Term Bullish Trend Despite Today's Dip
Technically, the stock is now trading above its 50-day moving average, which is at €498.82, confirming a short-term bullish dynamic despite today's decline. However, it remains slightly above its 200-day average, set at €545.71, reflecting a phase of reconquest after several months of consolidation. The Relative Strength Index at 70 indicates a recent strong movement but is approaching a technical overheating zone that could signal a pause. The MACD, with a line at 15.63 positioned above its signal at 10.31, confirms the presence of a buying momentum, although the histogram at 5.32 suggests that this momentum might slow down in the short term. The stock also struggles with its key resistance at €575.50, tested this Wednesday before today's pullback.
