LVMH (TM) stock tries to rebound from key support at €675
LVMH shares are trying to bounce back from a key support at €675, with the market expecting the luxury goods leader to post better-than-expected results.
- TURBO IDENTITY CHECK
- Turbo24 identity card
- Underlying: LVMH
- Turbo Order type: Long to Market
- ISIN Code: DE000A229ZC8
- Transmitter: Raydius
- Place of quotation: Spectrum
- KB level / Deactivating barrier: 653,4143€
- Leverage (1) 14
- Unlimited Time
- PROPOSED STRATEGY
- Purchase between: 675-700€
- Main goal: 740€
- Invalidation / Stop level: 670€
- Return/Risk Ratio: > 1
- (1) given for information purposes only
LVMH shares try to bounce back thanks to impressive results from competitors
LVMH (TM) shares have been trying to bounce back since yesterday following the release of impressive results from rival groups. Richemont and Burberry have announced sharply higher results, which bodes well for the French luxury leader (and other luxury groups) which will publish its results for the second half of 2021 next week. The consensus expects sales of 33.6 billion euros (+28%) and net income of 5.6 billion euros (+35%) in the second half of the year.
LVMH could be helped by its second-half results next week, but until then it may be the long rates that will support the stock. Indeed, the luxury group belongs to the club of high-growth behemoths and is therefore more sensitive to changes in long rates than defensive companies such as utilities. However, long-term rates may have peaked yesterday, with the 10-year yield on track to turn around after peaking at 1.90 per cent during the session.
LVMH stock could come back to test recent highs
In terms of technical analysis, the outlook for LVMH shares has become bullish again since yesterday thanks to the formation of a "swallow" from a major support at € 675 on which the market has already tried to rebound on it three times since November.
The outlook is turning bullish again and the first resistance to watch will be the recent highs at around €740 which could easily be reached if long rates fall further or if LVMH's results also come out higher than expected.
Conversely, these prospects would technically be invalidated in the event of a fall below €675. In this case, a correction up to the lows of the summer at about € 610 would be expected.