$Lovisa Holdings Ltd (LOV.AU)$ technical analysis chart:
Technical Analysis:
Support: A$29.97
Resistance: A$33.62
Price range A$29.97 to A$33.62: This price range is a box pattern structure, and the current price is at the bottom of the box. Technically, the price repeatedly touched the bottom of the box, which demonstrates it has some support. The price has repeatedly touched the bottom of the box, indicating that there is some support at that level, and has been fluctuating around the box since February of this year. There are a lot of trapped positions within the box range, and the sell orders are heavy, creating significant upward pressure. Subsequently, it needs to be observed whether the bottom price of the box still has support and whether the top of the box can be effectively broken through.
Market News :
Lovisa previously stated that its highly regarded CEO, Victor Herrera, will step down next year. Herrera has extensive experience in developing global brands and has played a significant role in Lovisa's ongoing global expansion. His departure will be a huge blow.
Morgan Stanley has maintained a Buy rating on Lovisa, setting a target price of A$37.00. Wilsons has also maintained a Buy rating on Lovisa, with a price target of A$35.50.
Overall Analysis:
Fundamentally, the analysts's rating suggest a price higher than the current stock price, so it is important to keep an eye on the company's executive changes. Technically, the current price is at the bottom of the box pattern, which demonstrates it has some support, but there's still significant upward pressure due to the heavy trapped positions within the box range.
In this scenario, investors should adopt a cautious strategy, setting stop-loss points to manage risk and maintaining ongoing vigilance regarding company developments and market conditions.
Source: Lovisa, Bloomberg
