LVMH Stock Falls Below a Major Technical Threshold, Dropping 28% Over One Year
LVMH stock experienced a sharp decline this Tuesday, March 3, dropping 3.5% to 502.30 euros by midday in a European market weighed down by geopolitical tensions in the Middle East. The luxury giant's stock has fallen below a major technical threshold, extending a bearish trend that has been ongoing for several weeks. Over the past year, the stock has now fallen by nearly 28%.
Technical Breakdown
By settling at 502.30 euros, LVMH stock has broken below the support level of 514.20 euros, a level that had been a technical floor monitored over several sessions. This breach occurs while the stock price is already significantly below its 20, 50, and 200-day moving averages, positioned at 536.74, 583.74, and 541.78 euros respectively. The growing gap between the current price and the 50-day moving average — over 80 euros — highlights the magnitude of the ongoing downward trend. The RSI, an indicator measuring the momentum of the stock in recent sessions, stands at 43, which, while not signaling an extreme oversold condition, confirms the dominance of selling pressure. The next identifiable resistance is at 595.70 euros, more than 18% above the current price, indicating a lack of intermediate levels that could slow the decline in the short term.
Market Downturn Amid Geopolitical Tensions
The correction of the stock this Tuesday is part of a broader downturn in European stock markets, in response to military operations in Iran and a surge in energy prices. Brent crude jumped to over $80 a barrel while European natural gas soared by nearly 25%, fueling fears of rising costs across the economy. Although LVMH is not directly exposed to the energy sector, the group remains sensitive to global economic conditions and consumer confidence, particularly in its key markets. Over the past week, the stock has lost nearly 10%, bringing its underperformance to more than 21% over three months. The financial calendar for the group includes a general meeting on April 23, 2026, followed by the detachment of the balance of the dividend for the fiscal year 2025 on April 30. These dates will be the next opportunities to provide visibility to shareholders.
