LVMH at a Turning Point: Testing Critical Resistance AheadWith HSBC improving its ratings about the Luxury Sector and upgrading OTC:LVMHF we could see a strong comeback and a great investment opportunity.
Trend:
- Price has been in a downtrend channel (the two pink descending parallel lines) since mid-2021.
- It recently bounced from the lower channel and, after retesting the resistance line on several occasions, finally managed to break through.
Support & Resistance (purple zones):
- Around 540–570 = strong historical support zone (price bounced there recently).
- Around 735–765 = major resistance.
Fibonacci Levels:
- Price has broken through the 23.6% level and, if momentum holds, could test the 38.2% Fibonacci level (which also aligns with the purple resistance).
- If the stock manages to break through, it could rally further from there.
Moving Averages:
- The stock has broken above the 20/50 and 100 EMA, showing short- to medium-term bullish momentum, and is now approaching the 200 EMA — the real test.
- The 200 EMA sits right at the resistance level mentioned above (purple zone / Fibonacci 38.2%), making this a highly significant area.
Other technicals:
- The MACD has turned positive with bullish momentum.
- RSI is around 65, showing healthy bullish strength without being overbought.
- No unusual volume spikes, which suggests the move is driven by steady momentum rather than a random spike.
