LVMH Stock Falls Below €500, Erasing Previous Gains
The global leader in luxury erases its previous day's gains and falls below the symbolic €500 mark at mid-session in Paris. This movement is part of a heavily shaken CAC 40, amid new geopolitical escalations in the Middle East. The Parisian luxury sector undergoes a widespread correction.
A Decline That Brings the Stock Below Its 20-Day Moving Average in a Geopolitically Tense Market
LVMH's stock drops 2.89% to €481.45 during the session, while the CAC 40 falls 2.24% to 8,247.50 points and the SBF 120 decreases by 2.21%. The Paris session is weighed down by a new direct military escalation between Washington and Tehran, with American strikes followed by an Iranian counterattack claimed on facilities in Kuwait and Bahrain. The VIX jumps nearly 20% to 18.68, reflecting the markets' sudden nervousness. In this context, the entire luxury sector declines, with EssilorLuxottica falling 4.26% among the largest drops in the CAC 40. LVMH thus erases the rebound recorded the previous day above €500.
The Stock Falls Below Its 20-Day Moving Average but Maintains a Cushion Above Its 50-Day Moving Average at €478.63
Today's decline brings the price 3% below the 20-day moving average, which was at €496.32, just as the stock had crossed it. The technical support now plays around the 50-day moving average at €478.63, which the price still exceeds by 0.59%. Breaking this level would pave the way to the support threshold identified at €460.85. The RSI at 54 remains neutral, showing no signs of excess. Over twelve months, the performance remains marginally positive (+1.28%), while the stock is still 11.16% below its 200-day moving average at €541.94, illustrating the lack of a fundamental bullish trend. The sectoral context remains heavy, with jewelry/gold sales in China down 8.9% year-on-year in May 2026. The €478.63 level constitutes the next technical reference point.
