Stock of the day: Burberry

By Tomasz Wisniewski|

Published: March 24 2023, 12:06 GMT+0

Stock of the day: Burberry

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Today’s stock of the day is the Burberry Group, which is listed on the London Stock Exchange. Over the past few weeks, the stock’s price has been showing very technical movements. While this is the first time that we are analyzing this instrument on our portal, it is unlikely to be the last given the kind of moves we’re seeing.

In the chart, we can see a Head and Shoulders pattern (yellow) forming in the middle. This pattern worked perfectly as the end of a bullish trend and the beginning of a bearish one. At the start of the previous week, the price broke the neckline of this formation (red), which triggered a sell signal.

This week, the price opened with a bullish correction as it rested on a key horizontal support at 22.2 (green), which was in line with the global risk-on sentiment in the market. However, we are currently trading below a horizontal resistance at 24 (grey), and as long as we remain below this level, the bearish move is more likely than a bullish one.

My view on BRBY is negative and will remain so as long as the price stays below the neckline of the Head and Shoulders formation. If the price were to rise back above the neckline, it would cancel out the bearish sentiment, but the chances of that happening are limited.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-burberry

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