LVMH Stock Rises 2% and Marks a 15% Increase Over the Month
The world's leading luxury company continues its recovery in late afternoon trading in Paris, in a significantly bullish CAC 40. The stock extends the momentum initiated since the end of May in the sector, as market conditions improve with geopolitical easing and the retreat of Brent. The stock is among the most significant increases in the flagship index.
The Stock Crosses the €520 Threshold and Accumulates More Than 14% Over a Month
LVMH stock gains 2.07% to €523.20, up from €512.60 the previous day. The stock is among the strongest gains in the CAC 40, which is up 0.80% at 8,451.44 points. Over a month, the gain reaches 14.84% and over the quarter, 10.45%, indicating a clear reversal of trends after a difficult start to the year for Parisian luxury. The session is part of a day of risk appetite, fueled by the American-Iranian framework agreement revealed on Sunday and by the retreat of the barrel, with Brent losing nearly 4% the day before to approach $83.
The movement also comes on the eve of the press conference by Kevin Warsh, who will chair his first meeting as head of the Fed on Wednesday. The sector context remains mixed: jewelry and gold sales in China were still down 21.3% in April year-on-year according to the NBS, while Swiss watch exports to China rebounded by 17.1%. This mixed reading does not prevent the stock market reconquest of the sector, already documented on June 15 during the breakthrough of a key resistance.
The 200-Day Moving Average at €542.56 Becomes the Next Hurdle After the Recovery of Short-Term Averages
From a technical perspective, the stock is widening the gap with its short-term moving averages: the 20-day moving average at €480.18 is now 8.96% below the current price, and the 50-day moving average at €474.17 is 10.34% behind. The 200-day moving average, at €542.56, however, remains above the current price (a gap of -3.57%) and represents the next level to surpass to technically validate the turnaround. The RSI at 68 is approaching the overbought zone without yet reaching it, reflecting the intensity of the rebound that began at the end of May.
The MACD remains positive, with a line at 9.56 significantly above its signal at 5.73. The consensus among analysts has undergone several revisions in recent weeks, including a target reduction by Berenberg at the beginning of June. The stock now accumulates 8.45% over the week and is regaining ground in a fundamental dynamic, with the next step at the 200-day moving average, around €542.60.
