The future for Burberry and Hiscox shares
With the fashion chain struggling at a 14-year low and this insurance firm on a very slow recovery from the Covid crash, independent analyst Alistair Strang reveals what the charts say.
5th September 2024 07:35
by Alistair Strang from Trends and Targets
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Burberry Group (LSE:BRBY) being ejected from the FTSE 100 was a bit of a shock. While as a countryside dweller, we’ve learned to eschew Burberry gear, now marketed for those who value brand name rather than actual utility. Meanwhile, insurer Hiscox Ltd (LSE:HSX) has been elevated from the FTSE 250 to the more prestigious FTSE 100, so perhaps there shall be implications for the share price.
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To dwell on Burberry first, their share price is looking just a little troubling as the reversal cycle which commenced in 2023 doesn’t yet look like it has completed. We’ve drawn a trend line on the chart but do not trust it. From our perspective, the share price needs to exceed 1,360p before entering the realms of safety and, at a current 623p, it feels unlikely.
Below just 620p calculates with the potential of reversal to an initial 467p with our longer-term secondary, if broken, at 296p eventually. Relatively speaking, the proximity of these target levels suggests the potential for a bottom which should provoke a bounce hopefully. But for now, we’re not enthusiastic about Burberry.
Source: Trends and Targets. Past performance is not a guide to future performance.
Hiscox are a different kettle of fish. Share price movement above 1,219p looks capable of provoking a surge to an initial 1,258p, with our longer-term secondary, if bettered, at 1,311p and a game changing potential with an official higher high.
While the initial Big Picture perspective suggests this secondary shall dump the share price into a zone where 1,421p exerts an influence, realistically we shall view the price as entering a cycle toward a long term 2,063p.
Source: Trends and Targets. Past performance is not a guide to future performance.
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea.
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