Burberry stock price took a brutal hit on Monday after the company announced that its CEO of 5 years, Marco Gobbetti, was stepping down as CEO. Gobbetti leaves Burberry at the end of 2021 to join the Italian brand Salvatore Ferragamo and will oversee an orderly transition with the company.
Gobbetti’s exit marks the end of a most successful era in the brand’s history, in which he transformed Burberry into one of the UK’s leading luxury brands. The brand is now searching for a successor to Gobbetti, who is leaving for family reasons.
Burberry’s stock price fell 8.67% on Monday, and despite Tuesday’s slight gain of 0.88%, the stock continues to struggle.
Technical Outlook for Burberry Stock Price
Yesterday’s steep drop found support at the 2025 price mark (19 March and 12 April low). The subsequent bounce translated into an intraday high at the 2091 resistance. However, price has been unable to breach this level as sellers forced the price lower. An extension of this pullback move puts 2025 at risk of a breakdown. If this support gives way, 2000 becomes the new target (9 March high and 20 April low). Below this level, 1950 and 1900 become additional targets to the south.
On the flip side, 2150 and 2186 will come into the picture as targets to the upside, only if there is sufficient bullish momentum to take the Burberry stock price off its present levels. This momentum is presently lacking, and with the current price picture forming a bearish harami, the stock remains under pressure.