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by Darius Anucauskas

Can Moët Hennessy Louis Vuitton Stock Stay Afloat?

From around mid-March, the Moët Hennessy Louis Vuitton stock (EPA: MC) failed to rise above the 362.80 barrier. Last week, the share price broke below a short-term upside support line taken from the low of March 19th, however, because that line is very tentative, right now we will focus on a range, where MC is currently stuck in. That range is roughly between the 332.90 and 362.80 levels. For now, we will stay on the neutral side and wait for a break of one of the sides, before examining the next directional move.

A drop below the lower side of the aforementioned range would confirm a forthcoming lower low and could clear the way for further declines. If so, the next possible support area to consider might be near the 316.10 hurdle, which is the lowest point of April. Initially, the stock may stall there for a bit, but if there are still not a lot of new takers of MC at that price, the stock could drift south again. The next level of support could be at 299.80, marked by the low of March 23rd.

The RSI and the MACD area leaning slightly towards the downside scenario, as both indicators are pointing a bit lower. Also, the RSI is sitting below 50 and the MACD is running below zero and its trigger line.

In order to shift our attention to some higher areas in the near term, we would like to see MC breaking above the 362.80 barrier, which is the upper bound of the previously-mentioned range. The stock could then pick up more new investors, with whose help it could shift further north. We will then aim for the 373.70 obstacle, a break of which could clear the path to the 388.40 level, marked by the highest point of March.

LVMH-240

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