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Trends & Analysis
News

Gold continues to shine amid geopolitical worries

News

Crude oil dips for 3rd session after supply data

News

Is there an AI upside for AMD?

News

GBP/USD recovers following wage report

News

Buy the JPMorgan dip?

News

Goldman Sachs shares surge after earnings beat

Asset Watch

Live luxuriously with LVMH?

Tuesday, December 19, 2023

It was a Fed-induced frenzy last week as investors celebrated the central bank pencilling in more rate cuts for 2024. And with the Dow Jones Industrial Average (DJIA) hitting a new all-time high, the bull is officially back on Wall Street.
However, it hasn’t been a smooth ride for all the major players like Moët Hennessy Louis Vuitton (LVMH). Though it’s the world’s largest luxury goods company, the stock has underperformed. But, while “it’s volatile at the moment,” GAM UK Ltd investment manager Flavio Cereda said, “By the time we get to Easter, I would be surprised if we didn’t have signs that this is starting to reverse.”
Raphael Thuin of Tikehau Capital also said, “Given the market pullback, we are starting to redeploy in the sector.”

Investors are known to price in accelerating fundamentals before they’re realised, so LVMH could catch up to the broader market in the months ahead.

The stock confronts resistance around €760, as the level is near the January 2022 highs and the March 2023 lows. As a result, it needs to surpass these hurdles for the bullish momentum to continue.

Yet, the 20-day moving average has been a reliable gauge of short-term momentum, and it acted as resistance after the stock sold off in July. Conversely, LVMH is now trading above the 20-day MA, and if it holds, it could help usher a breakout above €760.

So, does LVMH offer value at these levels, or will it remain a laggard in 2024?


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