EssilorLuxottica Towards new all-time highs above €200?
Analysis published on Friday, April 21, 2023
EssilorLuxottica (EL) reassured investors on the evolution of its sales in the first quarter of 2023 up 9.7% (8.6% at constant exchange rates). Even better, geographies like Europe and North America that were causing some concern have seen sustained growth. So much so that the specter of a recession is not for the moment a subject for the specialist inophthalmology. As a result, prices are currently crossing €181.
If the weekly close were to be beyond this level, we could soon envisage a return to contact with €195. But given that Friday’s session in daily units is likely to end in a bullish gap, overbought signals cannot be ruled out in the short term. A small consolidation before resuming the upward path would be legitimate to avoid any euphoria. It could intervene after having touched the 195€.
In this sense, a throwback (bounce on support) on €181 would increase the chances of seeing EL cross €195 in better market conditions. With a MACD that would lean on its float line and validate its bullish crossover in weekly units. Above €195, we would potentially head towards €207, according to the plot of the Fibonacci extensions.
Despite investors complaining about EL’s high valuation, the direction remains deeply bullish graphically. As long as prices do not break the ascending line from the lows of the Covid crisis and the €158, sellers will not be in a position of strength.
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