Burberry shares challenging immediate resistance at 1732p
Nicolas Suiffet November 12, 2020 3:45 AM
Burberry, the luxury fashion house, posted 1H adjusted EPS declined 88% on year to 4.6p and adjusted operating profit dropped 75% to 51 million pounds.
Burberry, the luxury fashion house, posted 1H adjusted EPS declined 88% on year to 4.6p and adjusted operating profit dropped 75% to 51 million pounds on revenue of 878 million pounds, down 31% (-30% at constant exchange rates). Retail comparable store sales were down 25% on year (1Q: -45%; 2Q: -6%). The company added: "With the brand resonating and attracting new and younger consumers, we have taken the decision to reduce markdowns and this will be a revenue headwind in H2 FY2021 with the main impact in Q3 FY2021 but will serve the long term interest of the brand."
From a chartist’s point of view, the stock price escaped from a symmetrical triangle pattern (bullish event) and is now nearing the upper Bollinger band and the former high at 1732p (June 5 2020). The weekly RSI (14) has pushed above its declining trend line. A price pullback to the trend line support near 1530p could be seen as a buying opportunity with targets at 1872p and 2085p. Alternatively, a break below 1463p would invalidate the bullish view and would call for a reversal down trend towards 1317p and 1017p.
Source: GAIN Capital, TradingView
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.