Moët Hennessy Louis Vuitton, commonly known as LVMH, is a French multinational luxury goods company. Headquartered in Paris, LMVH was formed 1987 through a merger of the fashion house Louis Vuitton (founded in 1854) with Moët Hennessy (established in 1971). The company controls and manages 75 prestigious brands under the umbrellas of 6 branches: Perfumes and Cosmetics, Wine and Spirits, Watches and Jewelry, Fashion Group, Selective Distribution, and Other Activities. LVMH is a part of CAC40 index. Investors can trade it under the ticker $MC at Euronext Paris and under $LVMHF in US in form of ADRs.
From the first days on the stock exchange, $MC title is in a permanent growth. From the fundamental point of view, this behavior may demonstrate a steady need of luxury goods in the society. Even though the wealth in the world is unequally distributed, however, the growing demand in luxury products is obviously present. The latter should be rising even stronger in the coming years. This development should advance, without any doubt, the luxury giant LVMH to new highs.
In the initial article from October 2020, we have forecasted the break of January 2020 high to take place. We were right. $MC has not only broken 439.05 highs, but the stock price has printed an all- time high in January 2022 at 758.50. Here, we provide an update and outlook.
LVMH monthly Elliott Wave analysis 06.29.2022
The monthly chart below shows the LVMH stock $MC listed at Euronext. From the all-time lows, first, the stock price has developed a cycle higher in wave (I) of a super cycle degree. It has ended in August 2000 at 98.70. From the top, a correction lower in wave (II) has unfolded as an Elliott Wave zigzag pattern. It has printed a bottom on September 2001 at 28.40. From the September 2001 lows, LVMH has broken to new highs and is still within a strong rally. This rise shows an extension of more than 4.236 multiples in relation to the length of the wave (I). Without any doubt, one can qualify the cycle higher as the blue wave (III). From 2001 lows, it shows 7 swings higher. Currently, the 8th swing in red wave IV is unfolding as a double three structure. Once finished, the 9th swing within wave V should end the impulse in wave (III).
Indeed, motive sequences develop in 5 – 9 – 13 – 17 – … (5+4 x n) swings. Therefore, one should expect a new high above 758.50 which will provide the 9th swing from September 2001 lows. On the one hand, a new high and 9 swings may accomplish the 2001 cycle higher in blue wave (III). On the other hand, they dont have to. As mentionned above, 13, 17 and more swings within cycle in wave (III) are also possible.
LVMH daily Elliott Wave analysis 06.29.2022
The daily chart below shows in more detail the 8th swing lower. From the all-time highs in January 2022 at 758.50, the pullback in red wave IV is unfolding as a double-three correction. First, 3 swings of black wave ((W)) have bottommed in March 2022 at 543.90. Then, a bounce in wave ((X)) has printed a connector at 675.20. Later, a new low below 543.90 has opened a bearish sequence. Therefore, more downside within black wave ((Y)) should take place. Currently, wave (C) of ((Y)) is in progress.
Investors and traders should be looking to buy LVMH in a pullback from 460.23-327.43 area targeting towards 828.89 and possibly higher.
FURTHER DISCLOSURES AND DISCLAIMER CONCERNING RISK, RESPONSIBILITY AND LIABILITY Trading in the Foreign Exchange market is a challenging opportunity where above average returns are available for educated and experienced investors who are willing to take above average risk. However, before deciding to participate in Foreign Exchange (FX) trading, you should carefully consider your investment objectives, level of xperience and risk appetite. Do not invest or trade capital you cannot afford to lose. EME PROCESSING AND CONSULTING, LLC, THEIR REPRESENTATIVES, AND ANYONE WORKING FOR OR WITHIN WWW.ELLIOTTWAVE- FORECAST.COM is not responsible for any loss from any form of distributed advice, signal, analysis, or content. Again, we fully DISCLOSE to the Subscriber base that the Service as a whole, the individual Parties, Representatives, or owners shall not be liable to any and all Subscribers for any losses or damages as a result of any action taken by the Subscriber from any trade idea or signal posted on the website(s) distributed through any form of social-media, email, the website, and/or any other electronic, written, verbal, or future form of communication . All analysis, trading signals, trading recommendations, all charts, communicated interpretations of the wave counts, and all content from any media form produced by www.Elliottwave-forecast.com and/or the Representatives are solely the opinions and best efforts of the respective author(s). In general Forex instruments are highly leveraged, and traders can lose some or all of their initial margin funds. All content provided by www.Elliottwave-forecast.com is expressed in good faith and is intended to help Subscribers succeed in the marketplace, but it is never guaranteed. There is no “holy grail” to trading or forecasting the market and we are wrong sometimes like everyone else. Please understand and accept the risk involved when making any trading and/or investment decision. UNDERSTAND that all the content we provide is protected through copyright of EME PROCESSING AND CONSULTING, LLC. It is illegal to disseminate in any form of communication any part or all of our proprietary information without specific authorization. UNDERSTAND that you also agree to not allow persons that are not PAID SUBSCRIBERS to view any of the content not released publicly. IF YOU ARE FOUND TO BE IN VIOLATION OF THESE RESTRICTIONS you or your firm (as the Subscriber) will be charged fully with no discount for one year subscription to our Premium Plus Plan at $1,799.88 for EACH person or firm who received any of our content illegally through the respected intermediary’s (Subscriber in violation of terms) channel(s) of communication.
Recommended content
Editors’ Picks
AUD/USD holds above 0.6500 in thin trading
The Australian Dollar managed to recover ground against its American rival after AUD/USD fell to 0.6484. The upbeat tone of Wall Street underpinned the Aussie despite broad US Dollar strength and tepid Australian data.
EUR/USD comfortable below 1.0800 lower lows at sight
The EUR/USD pair lost ground on Thursday and settled near a fresh March low of 1.0774. Strong US data and hawkish Fed speakers comments lead the way ahead of the release of the US PCE Price Index on Friday.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays near 4.2% after upbeat US data and makes it difficult for XAU/USD to gather further bullish momentum.
Google starts indexing Bitcoin addresses
Bitcoin address data is live on Google search results after users realized on Thursday that the tech giant started indexing Bitcoin blockchain data. However, mixed reactions have followed the tech giant's reversed stance on the cryptocurrency.
A Hollywood ending for fourth quarter GDP
The latest revisions put Q4 GDP at 3.4%, the second fastest quarterly growth rate in two years. Much of the upside was attributable to stronger consumer spending, yet fresh profits data affirmed it was a good quarter for the bottom line as well with profits up by the most since the Q2-2022.