BURL closes above its opening price after recovering from early selling pressure
Burlington Stores Inc. (BURL) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, BURL ended Thursday at 169.76 gaining $7.76 (4.79%), notably underperforming the S&P 500 (6.24%). Trading up to $4.70 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on March 19th, BURL gained 5.75% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (BURL as at Mar 26, 2020):
Thursday's trading range has been $9.46 (5.73%), that's below the last trading month's daily average range of $15.69. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for BURL.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 178.98 where further buy stops could get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "White Candle" stand out. Its common bullish interpretation has been confirmed for Burlington Stores. Out of 331 times, BURL closed higher 54.08% 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 61.03% with an average market move of 1.36%.