Yesterday, the Moet Hennessy Louis Vuitton stock (EPA: MC) opened the trading week with a large gap to the downside, this way leading to an automatic break of its long-term upwards-moving trendline drawn from the low of January 16th, 2019. The price fell closer to its 200-day EMA and continues to balance above it today. However, given that the recent drop below that upside line could have signalled a potential change in the trend, we will remain bearish, at least for now.
A further slide below the aforementioned 200-day EMA may just add more negativity to the whole near-term outlook, where MC could drift towards the 370.00 hurdle, marked by the low of October 22nd. Initially, the stock might get a hold-up around there, or it may even retrace slightly to the upside. That said, if it struggles to move back above the 391.20 barrier, or the previously-mentioned upside line, we will stay negative, at least in the short run. Another slide to the 370.00 obstacle and its break could mean that MC is still finding it difficult to attract new buyers. That’s when we will target the 356.65 zone, or the support area between the 341.00 and 344.25 levels. Those levels mark the lows of August 15th and October 3rd.
Our oscillators, the RSI and the MACD, are pointing lower. In addition to that, the RSI is below 50 and the MACD is below zero and its trigger line. Both indicators are currently inline with the idea of seeing a bit of downside in the near term.
Alternatively, if the share price gets pushed back above the previously-discussed upside line and also above the 403.10 hurdle, which is the low of February 21st, this might attract more buyers into the arena. The stock could then travel to the current highest point of February, at 423.40, a break of which may open the door for a re-visit of the 438.05 level. That level marks MC’s all-time high reached in January of this year.
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