Bears Have Arrived and the Support is Broken

Burberry Group Plc (LON: BRBY) is a listed company on the London Stock Exchange. It is a holding company that facilitates the manufacturing, design, and distribution of high-quality apparel and accessories under its brand name. It operates through three main segments, which are Retail, Wholesale, and Licensing.

A look behind the bullish journey

Over the past months, the BRBY stock price has shown a steady uptrend following a bounce from £1493 in May last year. As 2023 came, the firm posted positive half-yearly reports. It has drawn significant attention from investors.

The fashion small-cap company achieved impressive results in March 2023, with a reported revenue of £1.7B and a net profit of £396M. The firm made a year-on-year growth of 15.7%. In addition to these strong financials, the firm also provided dividends to its shareholders during this period. Over the years, Burberry Plc has consistently maintained an average dividend yield of 2.5%. In addition, the total dividend per share of £0.47 in 2022, which is expected to increase to £0.61.

The uptrend has made the bulls maintain control and push the price to its all-time high in April 2023. The BRBY stock price rocketed, surpassing the previous resistance levels of £2190 and £2403. However, since then the BRBY stock price has been in a downtrend.

Technical Analysis and Prediction of BRBY Stock Price

As of this writing, the BRBY stock price is trading at $2005, surpassing its immediate support level of $2015. If the stock price does not make a comeback, the Bears will push it down to its 2nd support level of $1827.

However, the bulls can turn the table here if they display their momentum for a few days. The BRBY stock price will create a deviation, moving towards its immediate resistance of $2262.

Furthermore, the RSI line has touched its oversold level of 30. Here, the bulls can gain an advantage as the stock is already in the oversold zone. If the BRBY stock price surpasses its end zone of the first support, which is $2060, the RSI will also make a bullish crossover with its SMA line.

Conclusion:

Burberry Group PLC is a listed company on the LSE, after 2022. The stock started rising, making its high in April. As of now, the BRBY stock has broken its immediate support level. However, bullish investors can gain control if they can show some strength. A bullish action can be expected by looking at the indicators and the current price action.

Technical Levels

Support:£2015, and £1827

Resistance: £2262, and £2386

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing