Quarterly Outlook
Macro Outlook: The US rate cut cycle has begun
Peter Garnry
Chief Investment Strategist
Technical Analyst, Saxo Bank Group
Summary: Luxury goods companies are displaying signals of uptrend exhaustion and potential top and reversal patterns in their stock movements.
The recent profit warning issued by Kering, accompanied by a significant sell-off, might have a ripple effect across the luxury goods industry, potentially impacting other prominent companies such as LVMH and Richemont.
Medium-term weekly chart Kering tried to establish an uptrend which is now demolished. If Kering closes below January trough at 343.40 there is no support until around 313-293.
To neutralize this bearish outlook, Kering needs to close above 376.35, and to reverse the trend, a close above 407 is essential.
Medium-term weekly chart. Declining volume during the year to date bullish trend is illustrating the trend is fragile and is supporting the view of the uptrend being in exhaustive mode furhter adding to the bearish outlook.
To demolish this bearish picture a close above 140.60 is necessary
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