Burberry –Approaching bullish break, but lacks volume support
Burberry shares are up almost 3% and are the top performer in the FTSE100 index.
A day end close above 1377 (Aug 24 high) would mark a bullish break and open doors for 1468 (Mar 3 high).
However, check the volume… the three-day winning streak (including today’s gains) is accompanied by falling volumes. Hence, bulls should observe caution as there could be a shake off following a bullish break. Note, there is a bullish 50-DMA and 200-DMA crossover on the chart.
Overall, dip demand is likely and bullish invalidation is seen only below 1277 (Aug 4 low).
A day end close above 1377 (Aug 24 high) would mark a bullish break and open doors for 1468 (Mar 3 high).
However, check the volume… the three-day winning streak (including today’s gains) is accompanied by falling volumes. Hence, bulls should observe caution as there could be a shake off following a bullish break. Note, there is a bullish 50-DMA and 200-DMA crossover on the chart.
Overall, dip demand is likely and bullish invalidation is seen only below 1277 (Aug 4 low).
