LVMH Stock Rebounds by 2% and Moves Above Its Moving Averages
The world's leading luxury company closed Wednesday's session up in Paris, within a well-oriented CAC 40. The stock extends the recovery dynamic initiated at the end of May in the Parisian luxury sector. This movement is accompanied by a technical repositioning and a strategy adjustment by analysts.
The Stock Moves Above Its Short-Term Moving Averages After a Week of Decline
LVMH stock gained 1.92% to close at €493.00, up from €483.70 the previous day. The stock is recovering after a 5.25% decline over the week. Today's progress places the price above the MM20 (€488.76, a +0.87% difference) and MM50 (€476.44, a +3.48% difference). The rebound should be viewed with perspective on longer horizons: the MM200 at €542.42 remains 9.11% above the current price, indicating that the medium-term trend has not yet shifted. The RSI at 48 appears in a neutral zone, without triggering a directional signal.
The identified resistance at €520.30 outlines the continuation of the movement, while the support at €452.30 was preserved during last week's decline. The underlying momentum is also evident in the monthly figures: +4.32% over a month and +5.66% over three months, with the stock still up 9.6% over a year. The rebound is part of a well-oriented session for the Parisian luxury sector, with L'Oréal climbing 2.83%. The CAC 40 index closed up 0.54% at 8,385.49 points.
CIC Market Solutions Upgrades LVMH to 'Buy', Target Reduced to €570
CIC Market Solutions upgraded its rating on LVMH from 'neutral' to 'buy' on June 23, while lowering its price target from €620 to €570. The new target represents a potential of about 15.6% relative to the closing price. This repositioning occurs in a still contrasting sectoral context: according to Chinese data from May, sales of jewelry and gold fell by 8.9% year-on-year in China, while Swiss watch exports to this market increased by 17.1%, indicating a shift rather than a collapse in demand.
On the French side, exports of wines and spirits declined by 4% in value in the 2024 report, a vulnerability point for the group's brands in this segment. The market dynamics continue to be dominated by a more restrictive central bank environment, with the ECB raising its rates for the first time since 2023, a factor weighing on the multiples of growth stocks. Next milestone for the stockholders: the resistance at €520.30, which would confirm the technical return to an upward trend.
