Shares of Burlington Stores (BURL) are breaking out of a cup and handle continuation pattern and making new highs.
Cup and handle rim line resistance is located at $158 level on the Burlington chart, and the stock is currently trading in the $160 area. The relative strength index reading reflects renewed positive price momentum and the money flow indications and volume level suggests that the stock is being accumulated.
A similar cup and handle pattern has also formed on the SPDR S&P Retail ETF (XRT) chart. The ETF Is breaking above its resistance line. This is a positive for the sector in general but particularly for Burlington shares, which have consistently outperformed the broader retail space. They are up 21% relative to the XRT over the last six months.
This could be the start of a second phase in the retail rally that began nine months ago.