BURL closes above its opening price after recovering from early selling pressure
Burlington Stores Inc. (BURL) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, BURL finished the week 6.9% higher at 245.68 after gaining $1.54 (0.63%) today, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 245.68 marks the highest recorded closing price ever. Trading up to $1.76 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on January 29th, BURL actually lost -2.48% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (BURL as at Feb 14, 2020):
Friday's trading range has been $3.46 (1.41%), that's below the last trading month's daily average range of $4.59. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for BURL.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
After trading down to 243.26 earlier during the day, the stock bounced off the key technical support level at 244.64 (S1). The failure to close below the support might increase that levels significance as support going forward.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 228.84.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Burlington Stores. Out of 296 times, BURL closed higher 54.39% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 60.81% with an average market move of 1.59%.