Head and Shoulder Bed Bath and Beyond BBBY has formed a classic head and shoulders reversal pattern. With poor guidance and an update on recent estimates this stock is likely going to continue going down for the next 3-9 months. Consumer spending seems to be shifting away from this store as more people are buying retail goods online. The so called "Santa Claus" rally is likely going to leave investors even more disappointing. I'm looking for a bounce around the $36 previous support.
BBBY trade ideas
BBBY - Consolidating below all time highIt looks to me as if BBBY is on the verge of making new highs. These couple of months were just a consolidation before going again above 80$. When I bought this stock the weekly chart was standing at value (it still does) and it was oversold on the Force Index (not anymore). My bullish bias still stands.
Going to the daily chart, the triangular consolidation is more visible. There are some bullish divergences (sort of) on the indicators, and the impulse is green. I do not know if from now we are heading directly for new highs, but I want to be long until proven wrong.
Bed Bath & Beyond Inc BBBY - Daily - Turning up from oversold BBBY seems cheap to me at 1.1 times sales (PSR 1.1) and with earnings just 7 days away and with retail stocks already suffering under the weight of poor retail sales, I think the news is already out and some upside may be more likely at this stage. The last time BBBY declined it fell for 114 market days and approximately the same percentage decline. That is only an interesting point but nothing to rely on.
The "range expansion" for BBBY in this little rally off of the 60 level is indicative that the sellers are exhausted and that short-covering and new buying may be in the cards in the short run.
With EPS only 7 days away - this is a short-term trade. Exit before earnings even though my forecast extends well beyond 7 days.
Tim 61.26 +0.71 last +1.17%
11:54AM EST 6/18/2014
BBBY Bounce Level TodayThis morning, many of the leading retail stocks are being sold off to start the day. Bed Bath & Beyond Inc. (BBBY) is one of the leading retail stocks declining lower. The stock is falling by 0.97 cents to $77.00 a share.
Short term day traders should watch the $76.46 level for strong intra-day support. This could be an area where the stock could stage an intra-day bounce.
Nicholas Santiago
www.InTheMoneyStocks.com