Good morning everyone,
Yesterday we learned the news that the designer Alessandro Michele is leaving the brand for which he has been working for the last twenty years, namely Gucci. It appears it doesn’t seem to be from his own will. So I went to see how the Kering stock is doing, as it is the owner of the Gucci brand.
The stock was already declining in recent years.
In fact, from the highs of 800 euros it has even managed to halve its market cap already, around 400 euros to then produce the rebound that we are witnessing in these days. Looking at the monthly chart, which I attach, I’m still astonished when I see these exactly mirror movements that many stocks occasionally, if not often, have. Observe carefully from the highs of 2021 how each candle on the descent is exactly identical in shape (perhaps more contained in the amplitudes) to those exactly opposite.
If the specularity were to remain, and honestly I don’t see why it shouldn’t continue (in this case it is essential not to remain tied to one’s ideas when the specularity will fail) I have drawn the continuation of the specularity by tracing the bullish movements and inserting them, specularly, in the right part of the graph. What is also interesting is to note how November 2021 is an important time cluster, because it is in fact 50% of the time that the stock took to climb (4 years and now for the stock it took exactly 2 years).
Gann took into account the movements from the minimums to the maximums or vice versa, as in this case I am doing. So each time cluster corresponds to a maximum or a minimum. If the previous movement was from a minimum to a maximum, now the movement is reversed. So the time clusters should now mark maximums, and not minimums. This is why November 2021 should represent a maximum, and then continue until it returns to where the stock started, in this case 300 euros. June 2024, when it reaches the 100% extension of the time of the previous movement, the stock will likely be at a maximum, which is certainly not a new absolute maximum.
Greetings Francesco Maggioni
