LMVH and gap zone: great opportunity for repositioning?

LMVH and gap zone: great opportunity for repositioning?
LMVH and gap zone: great opportunity for repositioning?

To fill the gap, prices will have to return to 689 euros. The day after the announcement of the results, a huge trading hole had formed and the stock opened at 732 euros on January 26 compared to closing at 685 euros on January 25.

The irregular results of companies in the luxury sector, in China in particular, and the rise in trade tensions with China (even if for the moment they are mainly focused on electric cars but pose the risk of retaliatory measures) have weighed on trend in recent weeks.

A gap filling is not an “obligation” for the market, but certain massive gaps can become technical objectives for speculators or trading algorithms. The risk of making another foray under 700 euros on LVMH is therefore not zero. However, it seems to me that this gap zone represents a good opportunity for repositioning over a period of a few months.

The risk of the current correction phase is that it accelerates, fills the gap, or even in a somewhat “extreme” scenario that it approaches the low point of Q1 in the 640 euro zone. But this could constitute a return to the bottom of a potential range zone formed since 2022. If the gap were filled, we would therefore get closer to the bottom of this range and the corrective potential would then seem relatively limited with a probability of rebound which would increase .

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