Christian Dior share falls below €380, lowest level since Covid
Christian Dior crosses another significant downward threshold on Wednesday, breaking an unprecedented low since the Covid-19 period. The stock is losing ground in a Paris market itself under pressure, as luxury stocks remain exposed to a deteriorated macroeconomic backdrop.
A low since 2020 broken as the stock slips below all its moving averages
Christian Dior touched €379.00 during the session, breaking its previous record low of €379.60 recorded in 2020, during the Covid-19 pandemic. The stock lost 2.82% compared to the previous day's close of €390, a decline of nearly 5.8% over the week. This deterioration is part of a severe quarterly trend: the stock is down 15.44% over three months and nearly 20% over one year.
The technical picture is equally telling: the price is trading well below its MA20 at €408.00 (gap of 7.11%) and its MA50 at €429.55 (gap of 11.77%), while the MA200 at €481.18 is more than 21% above the current price. These three moving averages form a stacked technical ceiling that confirms the medium and long-term bearish momentum. The RSI at 33 is approaching the oversold zone, though not yet fully anchored there, while the MACD remains in negative territory with a histogram at -1.19, signaling continued selling pressure.
A market under geopolitical and bond tension weighing on luxury stocks
Wednesday, September 9th's session is taking place in a context of a market generally unfavorable to risky assets. The CAC 40 fell 1.89% during the session and the SBF 120 declined 1.82%, in an environment marked by the surge in European long-term rates (the 10-year Bund is flirting with levels unseen in 15 years) and the rise in oil, with Brent approaching $98 following attacks on Saudi facilities. The VIX rose 7.78% during the session to reach 16.49, reflecting increased market nervousness. For a group like Christian Dior, whose exposure to wealthy clientele worldwide and Asian markets is significant, this environment combines several pressures: increased cost of capital, persistent geopolitical tensions, and a general deteriorated sentiment on luxury stocks.
The 6-year low below €388 broken in early September had only been a step: the stock has now gone even further, settling below the €380 threshold. The nearest resistance is located at €390, a level that corresponded to the previous day's closing price and which has just been lost. The next major technical marker to watch remains the €445 zone on the resistance side, now very distant.
