Stock of the day: LVMH Moët Hennessy – Louis Vuitton

This Thursday’ stock of the day we’re looking at luxury brands company LBMH Moët Hennessy that’s behind Louis Vuitton and Société Européenne. We picked this brand because we can see a promising bullish setup.

Nowadays, it’s not very common for a price to present a bullish occasion, so we definitely have to cherish instruments that do. Like almost all stocks, this was in a deep downtrend since the beginning of the year. The drop formed a falling wedge pattern (green lines) and this formation came to an end yesterday.

On Wednesday, the price managed to escape from the wedge to the upside (yellow). That breakout can be considered a strong buy signal and that’s of course our current sentiment here.