Burberry Group plc : A rally could be expected
By Etienne Veber
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 1,201 | GBX 0 | GBX 1,169 | -100% |
With a sound financial situation, the stock has a strong potential due to analysts average target price at GBp 1510.
The security follows a downward trend on all time scales. In the short-term, a level currently tested seems to stop this trend in the GBp 1200 area. Indeed, there is a double-bottom forming on the Mid-term support and a trendline.
Considering technical and fundamental elements, it seems to be an appropriate timing to open immediately a long trade in Burberry Group in order to benefit from the GBp 1195 support area.
A first target price will be the GBp 1282 resistance, ie a potential of 6.7%. Only a crossing of GBp 1282 would validate a bullish trend in order to aim a higher target price (GBp 1385). A stop-loss order will be placed under the mid-term support currently tested.