Bearish rising wedge setup for LVMH has forming since early 2011. It also hasn’t been able to clear weekly RSI of 65. Short term resistance/support is 134.9/129. Mid term, 120 at 38.2% fib extension is good entry if the wedge breaks down. Lower mid term support is 111.
If it does clear 143 & stays above, next target is around 167, but Im currently on the bear camp. Maybe they should buy Michael Kors…
Since I posted on LVMH setting up for a breakout 3 weeks back, it has broken out & gained 7%. Daily RSI is overbought but weekly isn’t. Unless there’s more positive news coming out soon, its likely to be of limited upside & faded. Short term resistance/support is 143/136.
I’m expecting an Xmas rally so its good to take profit at 143.
LVMH has been doing relatively well but has faced major resistance at 135, testing that level twice. Positive RSI divergence plus a rising support is helping it along. Short term support levels of 120 then stronger at 110. Barring a global slowdown, upside target is 160 if it breaks out & stays above 135. Its 161.8% fib extension at about 190 is a longer term goal.