The share price of Bed Bath & Beyond (BBBY) is sharply higher Thursday. Prices gapped to the upside on an earnings beat. We covered the charts on Tuesday, ahead of earnings, and advised against shorting the stock and pointed out a potential Point and Figure target of $23.
Prices are up around 33% on the day as traders and investors react to the stronger-than-anticipated second-quarter earnings figures. Let's check out the charts again. 
In this daily bar chart of BBBY, below, we can see that prices have gapped higher on heavy trading volume. Volume is the weapon of the bulls. This price strength has improved the indicators. The 50-day moving average has risen further, while the 200-day line continues to bottom. The On-Balance-Volume (OBV) line has turned up sharply with the heavy volume. The Moving Average Convergence Divergence (MACD) oscillator continues to strengthen.
In this three-year daily bar chart of BBBY, below, we can see how prices have broken above a couple areas of potential resistance. We used a daily chart instead of a weekly chart because the weekly chart did not display today's rally yet.
In this updated weekly Point and Figure chart of BBBY, below, we can see the same $23 price target that was projected on Tuesday. This target might be a good place to book some profits.
Bottom line strategy: I did not recommend buying BBBY ahead of earnings; I only recommended not shorting it. So, I can't take a victory lap. Nevertheless, traders who are long might consider taking some profits in the $23 area.
