Chart of the Week: LVMH
This week, we’re going to be focusing on retail company, Louis Vuitton – LVMH. Moet, Hennessy, Vuitton. You can see the symbol there – it’s a European company – LVMHF.
Before we go ahead and look on the chart, let’s take a look at the brands. This company is incredible here.
They’ve got Tiffany, Fred, Bulgari, Hublot. Investing websites here. On the alcoholic side, you’ve got again Hennessy, Moet, Krug, Belivedere. On the leather goods and fashion, you’ve got Christina Dior, Givenchy, Fendi, Celine, Louis Vuitton, Berlutti. On the perfumes and cosmetics, you’ve got Sephora, Guerlain, Stella, Givenchy, Christian Dior Perfume. Just a whole host of brands.
The is a strong chart
So this is a company that has a great looking chart of course. We’ll take a look at that right now.
You can see some real strong money flows here since the early part of November. And when the stock started to make a run at the end of October, it popped up in December and stalled down. Nearly made a double bottom over here. Ever since then, it’s just been straight up for this stock with a series of higher highs and higher lows, up near new all-time highs.
Now we see the stock has pulled back a bit towards the 20 day moving average, which, on a couple of occasions, the stock has held there firmly and made a nice move up. So I think this pullback might be a good spot to enter into some LVMH.
We’ve had good money flow. Again, it’s been very, very strong.
MACD has been strong as well.
Of course, when the stock gets extended away from this 20 day moving average, which is the dotted line here in the middle, it tends to pull back, or wait for that 20 day moving average to come right back up to it.
The stock is a bit overbought
The stock is a little bit overbought according to the relative strength up here in the top pane.
We’ve had some good volume days over the past couple of months, certainly at the end of January when earnings came out and they really popped the stock from about $740 all the way up to about $840.
It stalled a little bit for about 7 – 8 days, and then as we would expect, a textbook rally of higher highs and higher lows in LVMH.
This is a good name to take a look at. It’s a good, solid quality company with good strong brands.
And as long as the economy across the globe remains strong – we’re talking Asia, Europe, the United States and elsewhere – then LVMH products are going to be in high demand.
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