BURL closes within prior day's range after lackluster session
Burlington Stores Inc. (BURL) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, BURL finished the month -4.53% lower at 188.00 after gaining $0.49 (0.26%) today, underperforming the S&P 500 (0.77%). Trading up to $2.20 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (BURL as at Jul 31, 2020):
Friday's trading range has been $4.61 (2.46%), that's below the last trading month's daily average range of $6.02. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BURL. Prices continued to consolidate within a tight trading range between 182.23 and 189.99 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Bullish High-Wave Candle and the Bullish Spinning Top which are both known as bullish patterns. The last time a Bullish High-Wave Candle showed up on June 5th, BURL actually lost -0.89% on the following trading day.
Prices are trading close to the key technical support level at 184.75 (S1).
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could speed up should prices move above the close-by swing high at 191.06 where further buy stops might get triggered. Selling could accelerate should prices move below the nearby swing low at 182.67 where further sell stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish High-Wave Candle" stand out. Its common bullish interpretation has been confirmed for Burlington Stores. Out of 22 times, BURL closed higher 59.09% 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 63.64% with an average market move of 0.26%.