BURL faces potential rejection and slowdown near $283.76 due to technical resistance levels.
Jump to any passage
The following is a diagram, or perhaps two diagrams, in a breakthrough scenario. We have Burlington Coat Factory, as you can see here, experiencing a massive drop on the charts, breaking this upward trend line .
Meanwhile, guys, I'm not sure if you've seen this pattern before, but what is this drawn on your chart? This is a capital M, and Burlington is now doing what appears to be an A pattern in an MA pattern and is vulnerable to upcoming rejection on the charts.
Where might you ask? Right here, at the 50% zone of this parallel channel, around $283.76. It also represents the lower pivot range that forms the middle part of the letter M, and I will step back a little to show you this parallel channel that was established here in February 2023.
A great recovery so far in Burlington, and I specifically expect today more consolidation to break out of what looks like an inverted head and shoulders pattern in the near term, but I expect the price to slow down at the 283 level if it continues to rise.
Watchpoints
What this channel has said about $BURL
Verified Investing has only this one call on this stock.