We looked at Burlington Stores, Inc. (BURL) last month when it was downgraded by our Quant Ratings service. We concluded that, "BURL can rebound after its recent slide but the $90-$95 area is probably going to act as resistance. Further declines appear possible and perhaps likely if $80 is broken."
With some hindsight we can see that the $90-$95 area acted as resistance and with prices testing the flat 200-day moving average line we are likely to see further declines in the days and weeks ahead.
In this daily bar chart of BURL, above, we can see that the slope of the 50-day moving average line is negative. The daily On-Balance-Volume (OBV) line has moved down and up with the price action. In the lower panel the momentum study is not diverging from the price action as momentum has made lower lows in May and June as prices has made lower lows.
In this weekly chart of BURL, above, we can see that prices are testing the cresting 40-week moving average line. The weekly OBV line is edging lower the past two months and the Moving Average Convergence Divergence (MACD) oscillator has been in a bearish configuration since early May.
Bottom line: BURL has rolled over the past four months and is testing the cresting 200-day moving average line. Old longs should protect their profits and new longs should be very patient and keep their powder dry.