Will Burberry Group Plc Continue In Its Ascending Channel?

Burberry Group Plc acts a holding company for a high end clothing retailer which manufactures, designs and distributes apparels and accessories under the Burberry brand. Their mission is to push boundaries to open new opportunities for themselves, their customers and their communities through imagination, inventiveness, and ingenuity.

They announced their results yesterday which sent their shares down approximately 4% as annual profit was down. Alongside all of this they announced a positive outlook and beat the consensus which appears to be why the shares went back up in today's session. Their recovery was accelerated through the year with full price sales growing 63% in the final quarter which was driven my Mainland China, Korea and the United States. The increase today has left the shares in an interesting position as demonstrated by the chart below.

The results announcement yesterday saw the shares decline by approximately 4% to the 50% Fibonacci level, demonstrated by the long wick. The increase today though has brought the shares back into the ascending channel and above the support levels provided by both the 50% and 61.8% Fibonacci levels.

This appears to be a strong bullish move and it will be interesting to see what the next week candle produces. If we see another candle that looks bullish and remains within the ascending channel then we could well see a continuation of the positive outlook provided in their results and see the shares increase further. Whereas if the shares break this support level and drop out of the ascending channel and the Fibonacci support levels, then we could potentially see some more downward momentum. One we will be keeping an eye on over the coming weeks.