LVMH likely to bounce off a key support at 384
Remy Gaussens July 28, 2020 8:38 AM
traders may consider long positions above 384 with July (419) and 2020 tops (436) in sight
LVMH, the world leader in luxury goods, recorded an 84% drop in net profit in the first half of the year to 522 million euros, on revenue down by 27% to 18.39 billion euros. In the second quarter alone, sales fell by 38% on an organic basis. The Group reported that the profitability of the Louis Vuitton, Christian Dior and Moët Hennessy brands remained at a high level. The group expects a gradual recovery in activity in the second half of the year, but has not provided any quantified forecasts.
From a chartist point of view, the stock price opened on Tuesday with a bearish gap, just above a key support area at 384. This level is a tentative bullish channel support, 61.8% retracement of June – July up leg , the 50-day moving average and a long-term congestion area. As a consequence, above 384 a rebound can be expected and traders may consider long positions above 384 with July (419) and 2020 tops (436) in sight. Alternatively, a downside breakout of 384 would trigger a bearish acceleration towards the March to May key resistance at 360 now acting as a support.
Source: GAIN Capital, TradingView
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.