The most explosive moves often come when Wall Street least expects them – but after yesterday’s brutal selloff where the Dow plunged over 1,100 points following the Fed’s cautious rate cut outlook, we need to exercise patience and discipline.

While watching the broader market reset, our S.A.M. AI Scanner has identified Burlington Stores (BURL) showing some interesting technical patterns.

However, given the current market conditions, any potential setup will require careful validation and potentially waiting for the broader market to stabilize.

Let’s examine the technical signals we’re seeing, keeping in mind that market context is crucial for any trading decisions:

Multi-Timeframe Squeeze Analysis

The current setup is particularly noteworthy as our scanner has detected squeeze signals across several key timeframes:

• Fresh daily squeeze trigger
• Confirmed squeezes on 78-minute chart
• Additional compression on 130-minute timeframe
• Strong signal on 195-minute chart

When squeeze signals align across multiple timeframes – especially from larger to smaller intervals – it often indicates a powerful move is building.

Think of it like pressure building in a champagne bottle: the daily timeframe shows the main pressure building, while the smaller timeframes (78, 130, and 195-minute) confirm this energy is compressing across all trading windows.

This rare synchronization typically suggests institutional players are quietly accumulating positions while retail traders aren’t paying attention.

When these squeezes finally release, the move tends to be explosive and sustained, rather than just a brief spike

Technical Structure:

Pressure Building at Critical Levels

BURL’s current price action shows textbook compression as it approaches its 52-week high of $298.89:

• Tight consolidation near resistance
• Multiple timeframe squeeze alignment
• Strong upward momentum with 50% YTD gains
• Volume patterns suggesting institutional accumulation

Daily Framework

The near-term technical picture is showing exceptional strength:

• Perfect EMA stack configuration
• Fresh squeeze trigger forming
• Decreasing volatility indicating potential breakout
• Clear support levels established

When you see all exponential moving averages perfectly stacked (shorter above longer) with decreasing volatility near highs and a fresh squeeze trigger forming, it’s like a coiled spring getting tighter and tighter – typically leading to an explosive move in the direction of the established uptrend once resistance finally breaks.

Weekly Configuration

The longer-term chart reinforces our bullish thesis:

• Stacked EMAs showing sustained momentum
• Strong uptrend structure
• Clear volume confirmation
• Multiple support zones beneath current price

This isn’t just another uptrend – it’s showing the kind of technical structure that typically precedes major moves when combined with our squeeze signals.

Recent Earnings Winner

While Burlington’s recent earnings beat and raised guidance provide a solid fundamental backdrop, the technical setup is what makes this opportunity particularly compelling right now.

Your Action Plan

This rare confluence of technical signals warrants close attention:

• Multiple timeframe squeeze alignment
• Price consolidation near yearly highs
• Strong EMA structure

I have played BURL a few times this year, including earlier this month. If I do plan a trade, I’ll be playing it with call options. But I want to be patient given yesterday’s heavy selling.

Once again,the S.A.M. AI Scanner has proven invaluable in identifying setups like this before major moves.

Click here to find out how to get access to my proprietary S.A.M. AI Scanner that identifies this exact setup.