• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Fat Tail Daily

Investment Ideas From the Edge of the Bell Curve

  • Menu
    • Commodities
      • Resources and Mining
      • Copper
      • Gold
      • Iron Ore
      • Lithium
      • Silver
      • Graphite
      • Rare Earths
    • Technology
      • AI
      • Bitcoin
      • Cryptocurrency
      • Energy
      • Financial Technology
      • Bio Technology
    • Market Analysis
      • Latest ASX News
      • Dividend Shares
      • ETFs
      • Stocks and Bonds
    • Macro
      • Australian Economy
      • Central Banks
      • World Markets
    • Small Caps
    • More
      • Investment Guides
      • Premium Research
      • Editors
      • About
      • Contact Us
  • Latest
  • Fat Tail Series
  • About Us
Market Analysis Latest ASX News

Is Lovisa Holdings Share Price About to Fall Again? (ASX:LOV)

Like 0

By Lachlann Tierney, Monday, 21 September 2020

The popular women’s jewellery company took a beating through the first half of 2020.

What started for Lovisa Holdings Ltd [ASX:LOV] as a bit of a pullback in October 2019, turned into a full-blown free fall as the COVID-19 pandemic got into swing.

Wiping off 83.44% of the LOV share price into the 2020 March low, Lovisa managed to recover somewhat to trade at $7.68 at the time of writing. But where to from here?

ASX Lovisa Share Price Chart 1

Source: Optuma

What’s going on with Lovisa?

From the start of 2019 Lovisa had been steaming along, their stock price boosted up over 150%, with stores operating in Australia and internationally in 15 countries.

Then along came COVID-19.

COVID-19 caused widespread lockdowns of public places including shopping centres worldwide.

The lockdown of stores due to the pandemic and the fall in global markets significantly impacted Lovisa’s stock price.

Falling from $14.13 in October 2019, which was an all-time high, to $2.34 in March 2020.

After a bit of a recovery the price is now moving sideways…where can it go from here?

Where to next for the Lovisa share price?

A lot of global economies are in a bit of a mess right now. That effects everything both good and bad no matter what business you are involved in.

In the case of Lovisa we can zoom out to the monthly movements of the stock price, by taking in the wider picture it can help make assumptions about where the price may be heading.

ASX Lovisa Share Price Chart 2

Source: Optuma

By looking at a monthly chart and using Elliott wave theory it can give an idea of where the price is.

Wave 5 (the green one) moved up just over 75% of the previous impulse wave (purple one, wave 3) which is in line with the structure rules for wave 5.

The price then fell into a potential wave A before shooting back up.

This is the interesting bit.

The potential wave B moved up 50% of the previous wave — typical movement for a wave B is to retrace between 50–78.6% of the previous wave.

If this assumption proves to be correct, then the price may be moving to fall into another decline.

ASX LOV Share Price Chart 3

Source: Optuma

The last few weeks saw Lovisa move into a bit of a sideways pattern, indicating the direction of the stock is still up in the air.

With the most recent high being $8.58 and low being $5.65, one of these levels will have to be broken for the stock to be considered bullish or bearish.

Keep in mind to look for the supporting volume with any movement, as without confirmation of a move you may just be getting trapped in a false breakout.

Regards,

Carl Wittkopp,
For The Daily Reckoning

All advice is general advice and has not taken into account your personal circumstances.

Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

Comments

Subscribe
Notify of
guest
guest
0 Comments
Inline Feedbacks
View all comments
Lachlann Tierney
Lachlann ‘Lachy’ Tierney is passionate about uncovering hidden opportunities in the microcap sector. With four years of experience as a senior equities analyst at one of Australia’s leading microcap firms, he has built a reputation for rigorous research, deep-dive due diligence, and accessible investor communications. Over this time, he has vetted seed, pre-IPO and ASX-listed companies across sectors, conducted onsite visits, and built strong relationships across the microcap space. Lachy is nearing completion of a PhD in economics at RMIT University, where his research focuses on blockchain governance and voting systems. His work is housed within the Blockchain Innovation Hub at RMIT, a leading research centre for crypto-economics and blockchain research. He holds a Master’s degree from the London School of Economics and an Honours BA in Philosophy and Politics from the University of Melbourne. Born in New York and raised in California, Lachy grew up a few blocks from biotech giant Amgen and counts among his peers various characters in the overlapping worlds of venture capital, technology and crypto. When he’s not researching microcaps, he’s most likely sweating it out in a sauna or dunking himself in cold Tasmanian water.

Lachlann’s Premium Subscriptions

Publication logo
Australian Small-Cap Investigator
Publication logo
Fat Tail Microcaps
Publication logo
James Altucher’s Early-Stage Crypto Investor Australia

Latest Articles

  • The Game of Diplomacy: Trump’s Greenland Gambit
    By Lachlann Tierney

    Trump's Greenland gambit exposes Europe's weakness while Canada pivots to China. The global Risk board is being redrawn — resource control trumps alliances.

  • Why isn’t Trump targeting Australia with tariffs?
    By Nick Hubble

    For almost a year, Australia escaped the worst of Trump’s tariff tantrums. Yet we should be top of the list of targets. Why did we escape?

  • The Greenland trade: two ASX sectors to benefit
    By Lachlann Tierney

    The Greenland trade is back. Trump's Arctic push, puts gold and critical minerals back on the menu – to the benefit of a number of Aussie companies.

Primary Sidebar

Latest Articles

  • The Game of Diplomacy: Trump’s Greenland Gambit
  • Why isn’t Trump targeting Australia with tariffs?
  • The Greenland trade: two ASX sectors to benefit
  • Base Metals: The Technical Break-Out No One’s Watching
  • Goodbye Markets, Hello Platforms

Footer

Fat Tail Daily Logo
YouTube
Facebook
x (formally twitter)
LinkedIn

About

Investment ideas from the edge of the bell curve.

Go beyond conventional investing strategies with unique ideas and actionable opportunities. Our expert editors deliver conviction-led insights to guide your financial journey.

Quick Links

Subscribe

About

FAQ

Terms and Conditions

Financial Services Guide

Privacy Policy

Get in Touch

Contact Us

Email: support@fattail.com.au

Phone: 1300 667 481

All advice is general in nature and has not taken into account your personal circumstances. Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

The value of any investment and the income derived from it can go down as well as up. Never invest more than you can afford to lose and keep in mind the ultimate risk is that you can lose whatever you’ve invested. While useful for detecting patterns, the past is not a guide to future performance. Some figures contained in our reports are forecasts and may not be a reliable indicator of future results. Any actual or potential gains in these reports may not include taxes, brokerage commissions, or associated fees.

Fat Tail Logo

Fat Tail Daily is brought to you by the team at Fat Tail Investment Research

Copyright © 2026 Fat Tail Daily | ACN: 117 765 009 / ABN: 33 117 765 009 / ASFL: 323 988