LVMH Stock Rises +7% During Session, Yet Remains Far from Its Moving Averages
On Wednesday morning, shares of the luxury giant climbed to 499.55 euros, buoyed by a wave of optimism sweeping across the CAC 40, which is up 4.28% during the session. This rebound occurs as the stock had still been down more than 20% over three months, in a sector long weighed down by geopolitical tensions.
Ceasefire Announcement Sparks Market Relief
The announcement on April 8 of a ceasefire between Washington and Tehran, coupled with the prospect of reopening the Strait of Hormuz, triggers a strong relaxation movement on European markets. LVMH has advanced 7% from the previous day's close (466.85 euros), a rebound in line with other heavyweights in the sector: Hermès International is up 7.73% and L'Oréal 4.01%. The easing of energy prices—with Brent crude falling 15% to drop below $100—reduces pressure on logistics and production costs for luxury houses, which are highly dependent on global supply chains. However, this surge must be viewed within the context of a prolonged decline. The stock is still down 20.62% over three months and remains in negative territory over one year (-1.59%). The release of the Q1 2026 revenue, expected on April 13, will be a crucial test to assess the strength of demand, particularly in Asia and the United States.
Technical Analysis: Stock Nears Upper Bollinger Band
Technically, today's rise pushes the stock to 499.55 euros, very close to the upper limit of the Bollinger Bands set at 502.56 euros. The price is at the high end of its recent fluctuation channel (95% of the band), an area that usually signals a potential overbought condition. The RSI, at 37, remains below the 50 threshold, indicating that the medium-term momentum has not yet shifted in favor of a confirmed bullish trend. Concurrently, the price remains below its 50-day (512.00 euros) and 200-day (542.47 euros) moving averages, two levels that will act as resistance if the rebound continues. On the calendar, the group's general meeting is scheduled for April 23, followed by the detachment of the balance of the 2025 dividend on April 30, two deadlines that could fuel interest in the stock in the coming weeks.
