Gavekal Capital: European Luxury Retail: Skating on Thin Ice

Monday, December 1, 2014

European Luxury Retail: Skating on Thin Ice

In spite of generally positive price trends over the last month, some of the biggest European luxury retailers continue to struggle relative to the MSCI World Index.

While many continue in prolonged sideways trends in our point-and-figure charts, we remain concerned that these are not base formations (a positive) but, rather, better resemble large tops with little in the way of support should the stocks begin to decline:

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