Burberry may turn around soon? EW sequenceBurberry (ticker: BRBY) reaching ~14 years lows, where the risk /reward ratio for the mid/long term starting to be favourable. I have two scenarios sketched out on the weekly, white being a 5 wave up, in which we finished 3, followed by a yet unfinished irregular flat structure as a wave 4. Yellow suggests a 3 count move up as an (A) wave, working now on the (B) wave, and later (likely several years) a (C) would follow in 5 subwaves.
In yellow I would primarly expect a deeper cut in the (B) wave also as an ABC structure, where we likely nearing the A wave bottom in the foreseable future.
In both scenario a move-up should be imminent, white to start the wave (5) to the upside, and for the yellow it would be the B wave. For the yellow I put there the resistance levels, but be aware, as price cuts deeper (IF), then we need to adjust that red resistance fib box.
Now, the movedown already consist 5 waves, so technicly we could be near to the local lows, and also in support already (hence the post). Next levels to watch: 951, 885, and 834 and 768 as bigger fib support levels.
Weekly RSI is oversold despite MACD is weakening, On the daily we are building divergence already, so far all the meaningful MA's (9/21/50-52) currently rejecting price action, and far below the 200day MA.
