The technical picture of the Bed Bad & Beyond Inc. stock (NASDAQ: BBBY) shows that after this week’s break above a short-term downside resistance line taken from the high of December 27th, the share price went for a higher high. The stock also made its way above all of its EMAs on our daily chart and continues to trade above a short-term tentative upside support line taken from the low of January 24th. As long as BBBY remains above all of the discussed trendlines and EMAs, we will stay positive, at least from the near-term perspective.
Even if the stock retraces a bit more but continues to trade somewhere above the aforementioned upside line, the buyers might take advantage of the lower price, step in and send BBBY towards the current highest point of February, at 18.02. If that barrier fails to hold and breaks, this will confirm a forthcoming higher high and the next possible target could be at the 20.08 level. That level marks the highest point of December.
The RSI and the MACD are currently pointing slightly to the downside. However, the RSI remains above 50 and the MACD is still well above zero and the trigger line. This supports the idea of a small corrective move lower, before another possible leg north.
Alternatively, if the stock drops all the way below the previously discussed upside line, that may spook some buyers from the arena for a while. BBBY could then fall to the low of January 27th, at 13.62, a break of which might set the stage for a move to the 12.35 zone. That zone marks the lowest point of January.
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