Technical Analyst, Saxo Bank Group
Summary: Luxury goods companies LVMH and CFR Richemont have formed double bottom patterns indicating a return to 2023 peak levels
LVMH is hitting some resistance around 810 and a minor correction could be seen. However, LVMH is in an uptrend supported by positive sentiment on the RSI and rising traded volume suggesting LVMH is likely to be trading higher on the medium term .
LVMH has formed a Double bottom like pattern with potential to 866, as illustrated by the two vertical arrows on the weekly chart. A weekly RSI close above 60 threshold could be an indication of LVMH could move as high as the 2023 peak levels
Resistance around 824.
A daily close below 765 will demolish the bullish picture
CFR Richemont has formed almost similar pattern and is approaching resistance at around 135.55.
RSI showing positive sentiment with no divergence indicating CFR is likely to trade higher towards 142.80 resistance.
On the weekly chart at Double bottom has formed. This is called an Eve & Adam bottom because the first bottom is rounded and the second is pointy.
However, if CFR is closing the week around current levels the RSI is closing above 60 threshold thus in a positive sentiment. That is paving the road higher for CFD with potential to 140 possibly 146.
However, if closing above 141 there is no strong resistance until around 2023 peaks.
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