*purrrr* Ah merry elves under trees. Always good, regardless of background universe. It looks very dynamic also. The fire in the middle is a bit large for a forest but it serves well as a graphic element.
Nice scene. It definitely fits within the Hobbit "universe." I like the varied colour. However, I feel that this piece should be darker in some areas given the central light source. For instance the backwoods should probably be darker in contrast. The back of the figures should also be darker. Also, given the light source we should be able to see the dark shadow of the central figure, but where is the shadow? The flame also doesn't look natural to me, but I know that flames can be tricky since you are trying to draw something that is meant to be in constant motion.