17th July 2024 – One day after Burberry Group held their London AGM and announced a swift replacement of their CEO for the new Joshua Schulman, the price of the British fashion brand’s shares continue to dwell in their negative short-term trend reports Trend Intelligence, as the price closed at 704 pence having fallen some 48% since January 1st 2024.
Trend’s Analysis (click chart to expand): Trend’s R* Momentum Indicator creates a clear visual representation of price trends in play across asset classes and financial instruments. In our Burberry chart, Trend Intelligence reports aggressively negative trending R* and R* Signal lines, with both indicators operating below the critical zero line. This is, and has shown over time to be, a negative trend signal.
In addition to the R* indicator, price currently trades well below all 3 of Trend’s moving averages and below our Japanese Cloud indicator, which is shaded pink. The case could be made for the shares being short-term oversold, but this is not within the capacity of trend-following as a quantitative strategy.
The combination of all signals corroborates Trend’s negative short-term trend rating on the British designer with the price looking negative for the future days and weeks ahead.
Downside Sentiment: Burberry reported in their AGM yesterday that if the weak trading in the first quarter persisted into the second, the group would report an operating loss for the first half and that annual profits would be below expectations, reports the Financial Times.
Upside Sentiment: Burberry Group has suspended it’s yearly dividend in order to solidify its balance sheet. It is engaging in cost-cutting including redundancies and is rebalancing its appeal to middle-income spenders who have a propensity to spend with the brand, reports Directors Talk Interviews.
Authored by: Trend Intelligence, London
