Burberry’s outstanding turnaround targets as high as 1,800p

Being a dedicated follower of fashion, and on the occasion of its first season-less catwalk presentation, it would appear this is the right time to take a look at luxury brand group Burberry.

Burberry (BRBY): Support above the 200 day moving average targets as high as 1,800p

The recent history of Burberry has been an intriguing one, firstly for the way that the stock market has its fundamentals so strongly intertwined with the fate of the Chinese economy, and second on the basis that outgoing CEO Christopher Bailey managed to take a 75% pay cut, leaving at a measly £1.9m. The position on the daily chart is nevertheless one of recovery. This is said in the wake of the outstanding September turnaround for the shares just above the 200 day moving average at 1,226p, a notable positive technical buy signal. On this basis one would judge the price action in a very positive fashion, a point which is backed by the exhaustion gap reversal for September to date. The view now is that the shares are trading within a wide rising trend channel which can be drawn in from as long ago as March. While cautious traders might wish to wait on a weekly close above 1,400p before going long, the message at the moment is that while above the 200 day moving average the upside here should be as great as the March resistance line projection at 1,800p over the next 2-3 months or less.