This year’s trading activity of the Bed Bath & Beyond stock (NASDAQ: BBBY) reminds us of a roller-coaster ride. From the start of the year, the share price was rising, but found strong resistance in the beginning of April near the 19.56 mark and then started selling off. The slide led to a fall below the 2019 opening price at 11.13. But then BBBY got picked up by investor-interest again near the 7.30 level, which helped the stock to rise back above the year’s opening price. The share price of one of the largest American chains of domestic merchandise retail stores continues to drift north and yesterday it managed to break and close above its October high, at 15.00. At the same time, BBBY continues to trade above its medium-term upwards-moving trendline drawn from the low of August 19th, so as long as that line stays intact, we will remain bullish, at least for now.
A further push higher may help the stock to test the 16.15 barrier, marked by the highs of May 8th, 9th and 13th. The price might get a hold-up around there, or even correct back down a bit. But, as we mentioned above, as long as BBBY stays above that medium-term upside line, we will stay positive with the overall outlook, at least for a while. Another round of buying could help to overcome the 16.15 zone this time and if so, the next resistance area to consider may be around the 17.03 level, marked by the high of April 29th.
Our oscillators, the RSI and the MACD, are showing a rise in the upside momentum, which supports the above-discussed idea. The RSI is above 50 and points slightly higher. The MACD is above zero and its trigger line, while also pointing to the upside.
Alternatively, a price drop below the 13.85 support area and a break of the aforementioned upside line could scare away investors for a while. This is when we will aim for the 12.36 hurdle, which if broken may send BBBY to the 11.70 level, marked by the low of October 10th.
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