BURL trade ideas
$BURL Lower lows and lower highs downtrending channel formingKey points;
1) Historic up-trending channel has been convincingly broken for some time now.
2) Prices have begun putting in lower lows without putting in higher highs, thus a downtrending channel may be emerging
3) The gap downwards which occurred in early June due to an earnings announcement has now been filled.
4) The current price is trading right at a potential new down-trending resistance line
As always DYOR
Burlington Stores-BURL-Daily -Insider Selling & High Valuation3 Insiders each just sold $550,000,000 worth of BURL after this long, persistent rally in BURL shares.
3.75 Billion Mkt Cap but only .084 Billion Free Cash Flow =2.2% return on investment
Ring the Bell - Time to Sell
I don't have a specific target in mind, just a lower price over time. I set a P&L for a short position and probably need to wait for a break under a previous day's low and then close under the highest range and THEN close under the 3-day range to set up the bearish trend from here. It's been such a long, persistent rally that anything is possible from here.
Please feel free to do more due diligence and explore why people would pay 50 times free cash flow for this company.
Thank you,
Tim 3:38PM Tuesday, January 27 2015
