BBWI trade ideas
BBWI – 30-Min Long Trade Setup !📈 🚀
🔹 Asset: Bath & Body Works, Inc. (BBWI)
🔹 Timeframe: 30-Min Chart
🔹 Setup Type: Bullish Breakout Trade
📌 Trade Plan (Long Position)
✅ Entry Zone: Above $28.50 (Breakout Confirmation)
✅ Stop-Loss (SL): Below $27.32 (Invalidation Level)
🎯 Take Profit Targets:
📌 TP1: $30.09 (First Resistance Level)
📌 TP2: $32.02 (Extended Bullish Move)
📊 Risk-Reward Ratio Calculation
📉 Risk (SL Distance): $28.50 - $27.32 = $1.18 per share
📈 Reward to TP1: $30.09 - $28.50 = $1.59 (1:1.34 R/R)
📈 Reward to TP2: $32.02 - $28.50 = $3.52 (1:2.98 R/R)
🔍 Technical Analysis & Strategy
📌 Downtrend Breakout Setup – Price is testing the descending trendline and attempting a breakout.
📌 Support Holding at $28.50 – Buyers stepping in, creating a potential reversal.
📌 Volume Confirmation Needed – A strong bullish candle above $28.50 confirms entry.
📌 Momentum Shift Expected – Breakout could lead to $30.09, then $32.02.
📊 Key Resistance & Support Levels
🔴 $30.09 – First Resistance / TP1
🟡 $28.50 – Breakout Level / Long Entry
⚪ $27.32 – Stop-Loss / Support Level
🟢 $32.02 – Final Target / TP2
📈 Trade Execution & Risk Management
📊 Volume Confirmation – Ensure strong buying pressure before entering.
📉 Trailing Stop Strategy – Move SL to $28.50 (breakeven) after hitting TP1 ($30.09).
💰 Partial Profit Booking Strategy:
✔ Take 50% profits at $30.09, let the rest run to $32.02.
✔ Adjust SL to breakeven ($28.50) after TP1 is hit.
⚠️ Fake Breakout Risk
❌ If price moves back below $28.50, exit early to limit losses.
❌ Wait for a strong bullish candle close above $28.50 before entering aggressively.
🚀 Final Thoughts
✔ Bullish Setup Forming – Breakout signals potential upside movement.
✔ Momentum Shift Expected – Watch for volume confirmation.
✔ Favorable Risk-Reward Ratio – 1:2.98 R/R at TP2 makes this a high-quality trade.
💡 Stick to the plan, manage risk, and trade smart! 📈🔥
🔗 Follow @ProfittoPath for More Trade Setups!
#ProfittoPath 🏆 | #BBWI 📈 | #StockMarket 📊 | #BreakoutTrade 🚀 | #LongSetup 💰 | #RiskManagement 🔍 | #MarketAnalysis 📉 | #SwingTrading
BBWI Buy Setup - Strong Support, Risk/Reward 1/16Ticker: NYSE:BBWI (Bath & Body Works)
Long Entry: Near current strong historical support level
Target: Last high (considered as take profit point)
Stop-Loss: Just below current support
Risk-Reward Ratio: ~1:16
Analysis:
NYSE:BBWI has reached a strong historical support level and recently formed a local higher high, signaling a potential reversal to the upside. Additionally, volume has spiked, suggesting that recent panic selling may have seen shares shift from amateurs to professionals, who tend to buy at strong support levels. Owning alongside professional buyers can be advantageous, as it often reflects more strategic positioning.
The current setup provides a solid risk-to-reward ratio of about 1:16 up to the last high, which can be considered a key take-profit point. While this high serves as a primary target, I plan to manage my position flexibly, potentially closing portions earlier or holding some for further upside if the trend remains favorable.
Strategy:
Entry: Buy near current support level
Stop-Loss: Set just below support
Target: Last high as primary take-profit level; partial closes based on trend continuation
Key Points:
Volume spike at support suggests strong buying interest, possibly from professional buyers
Local higher high supports a potential uptrend
Risk management is crucial, with a close stop to limit downside and a favorable target ahead
Conclusion:
With strong support, higher volume, and potential professional buying, NYSE:BBWI offers a compelling long opportunity with a favorable 1:16 risk-reward ratio up to the last high. This setup allows for both targeted and flexible profit-taking as the trend develops.
Note: I’m already in this position—I entered 7 weeks ago at the bullish engulfing pattern around the $29.21 level. I meant to share the idea back then, but the current market conditions are still quite similar, reinforcing my confidence in this setup.
Disclaimer: This is not financial advice. All information is for educational and informational purposes only. Trading and investing involve risk, and it’s essential to do your own research or consult a licensed financial advisor before making any financial decisions.
BBWI (DOUBLE TOP)Looking at BBWI’s daily chart, I’m observing what looks like a classic double-top pattern. Here’s a breakdown of the pattern and what it might suggest about the current market sentiment and potential price action:
Two Distinct Peaks:
BBWI has created two peaks near the $30 - $30.50 range, which has acted as a strong resistance zone. The price attempted to push through this level twice (mid-October and more recently) but failed both times, indicating significant selling pressure at that area.
The fact that price couldn’t break this level on two separate attempts suggests a weakening of bullish momentum.
Neckline at $28.77:
Between these two peaks, the price pulled back to form a low at approximately $28.77. This level now acts as a neckline, representing a key support area.
This neckline level is significant because, in a double top formation, a break below this support is what confirms the pattern. If BBWI moves below $28.77, it would indicate a shift from buyers to sellers, suggesting that the trend might reverse to the downside.
Potential Implications if the Neckline Breaks:
Bearish Signal: If the price breaks and holds below $28.77, it would confirm the double top and signal a bearish reversal. The breakdown would suggest that buyers are losing control and that sellers are likely to drive the price lower.
Measured Move Target: In technical analysis, a common approach is to measure the height of the double top pattern (from the peaks at $30.50 to the neckline at $28.77) and project it downward from the neckline to estimate a potential target. This distance is approximately $1.73, which would suggest a target around $27.00 if the neckline breaks.
Support Zones Below:
If the breakdown occurs, the next significant support level appears around $26.13, the old low. This level has acted as a strong support in the past so it could be a potential stopping point for a bearish move.
Additional support may also be found at around $27.50, a psychologically significant level at which buyers might step in.
Technical Indicators:
MACD: Currently, the MACD is in a downward trend, reinforcing a bearish bias. This indicates that bearish momentum may be building, adding weight to the idea that a neckline breakdown could lead to further downside.
Volume: Volume has been relatively light on recent upward moves and stronger on declines, which suggests a lack of conviction on the bullish side. Increasing volume on a move below the neckline would strengthen the bearish outlook.
BBWI: building on its 200-week simple moving averageA price action above 46.00 supports a bullish trend direction.
Further bullish confirmation for a break above 48.00.
The target price is set at 50.00 and 54.00 (its 78.6% Fibonacci retracement level).
The stop-loss price is set at 43.00 (its 200-week simple moving average).
Building on its 200-week simple moving average, which might support the upside price potential.
BBWI: aiming for its 38.2% retracement?Channel Formation: The stock has been trading within a declining channel, characterised by lower highs and lower lows. This can typically indicate a bearish trend, but it's essential to note any potential breakout or breakdown from this channel.
Fibonacci Retracements: The stock's price seems to be interacting with the 23.6% retracement level, which can serve as a potential resistance or support point.
Target and Stop Levels: The technical analysis suggests a bullish outlook with a target set at 35.00 (implying a potential gain of +7.4%). Conversely, the recommended stop-loss is at 31.00 (risking a -5.2% decline). This establishes a favourable win/loss ratio of 1.5:1.
Increase Exposure Point: The analyst proposes increasing exposure around the 34.00 price mark, possibly due to expected resistance or previous price behaviour at this level.
Mean Reversion Possibility: The label "Mean reversion?" suggests whether the stock may revert completely to its mean or average price after a prolonged decline.
BBWI Bath & Body Works Options Ahead of EarningsAnalyzing the options chain and the chart patterns of BBWI Bath & Body Works prior to the earnings report this week,
I would consider purchasing the 38.5usd strike price Calls with
an expiration date of 2023-8-25,
for a premium of approximately $0.87.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Looking forward to read your opinion about it.
Bath & Body Works (BBWI) - Frequency Formula Strategy - LongStrategy Overview: The Frequency Formula
Our trading strategy, "The Frequency Formula," is built on cutting-edge Fourier Wave Transform theory. The strategy utilizes four unique indicators: the Frequency Formula Chop Indicator (FF-CI), Frequency Formula Trend Indicator (FF-TI), the Frequency Formula Volume Indicator with Combined Ratios (FFVI-CR), and the Frequency Formula Net Buy/Net Sell Volume Indicator (FF-NBNS). Together, they identify optimal entry and exit points based on changes in market trends, volumes, and sentiments.
Why Now Is a Good Time to Enter
The FF-CI and FF-TI suggest that the current market chop and previous bearish trend are transitioning into a solid upward trend. Simultaneously, the FF-UVI-CR indicates increased buying volume and positive sentiment, suggesting strong support for the upward price movement.
What to Look for When Exiting
Keep an eye on our FF-VMI-CR and FF-NBNS Indicators. When the FF-VMI-CR indicator positive volume (blue) and negative volume (red) signals converge or "squeeze", this indicates a significant increase in net selling volume and might indicate a potential trend reversal; also, watch the FF-NBNS indicator's net-selling value (red) to increase and close at any value greater than zero, at this point you should exit the position.
Remember to always manage your risk, and don't invest more than you can afford to lose. Happy trading!
Bath & Body Works Pulls Back After Strong EarningsBath & Body Works rallied after strong quarterly results and now it’s pulled back.
The first pattern on today’s chart is the high-volume bullish gap on May 18 after earnings, revenue and guidance surprised to the upside. The retailer pulled back a week after the event, followed by a sharp rally. It peaked around $43 before revisiting $39.
The current location represents a 50 percent retracement of the bigger move, which could lure dip buyers.
Second, BBWI's price area is near the May 23 high and slightly above the 200-day simple moving average (SMA). Will support form in this zone?
Next, yesterday featured a bullish hammer candlestick pattern.
Finally, the pullback is near the rising 21-day exponential moving average (EMA). MACD is also trending higher. Both of those may suggest that direction is headed upward.
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Watchlist 2023-02-23 #TDOC #BBWI #HD #TGNA #NVDA #BABA SPY - as I mentioned the prior day, the selling did not stop. SPY rejected the 400.30 level twice yesterday and ended the day with the final flush down to 397. Gapping up this morning on light vol, if we can hold the 400.30 level , we could see a grind higher to 402, and maybe 404. Expect multi rejects off those levels as we haven't made a significant short-term daily bottom by any means.
Short Watches:
TDOC - EPS miss, while fiscal 2023 revenue estimate misses consensus. Below the 200 EMA, falling 9/21 EMA. Below 28.38 pivot. Roo, to 25.81 (be aware of the high vol node at 27). Down 0.70 ATRs on 1.5 RVOL. Decent setup in this bearish environment, no pivots to hold this up immediately off the open
BBWI - slides premarket after earnings beat is offset by soft guidance. Down a.5 ATRs, RVOL of 2.5 (both great). Gapping below the 39.60 key pivot into a new range. Clear signs of rejection higher with a suto- H&S, and reversal green bar, below the 200 EMA and downward trending 9.21 EMA. A+ setup with room to 35. Needs a particularly strong day as ATR is 1.7
HD - continuation from 2 days ago strong selling. Forming an daily 3 bar play. 295 key level to break for downside momo.
Long Watches:
NVDA - Bullish fakeout below 207 to flush out early longs and add shorts. key level 232.85.Needs to hold this level for a long.
Other watches:
BABA - reported lackluster growth for Q4 earnings. VERY key level is the 200EMA coinciding with the 1000 price level. A failure or reclaim of this level could bode for a position in either direction - keep on watchlist.
TGN, PANW
I focus on names trading elevate RVOL>2, trading past key ranges and pivots, preferably with news catalysts.
Yellow = Support
Purple = Resistance
Red = short opportunity
Green= long opportunity