Is Bed Bath & Beyond Back? What the Charts Say

BBBY has made a new high for the move up Friday.

On Mad Money Thursday night, Jim Cramer spoke with Mark Tritton, president and CEO of Bed Bath & Beyond Inc. (BBBY) . BBBY was also upgraded Friday to a "Hold" recommendation by TheStreet's Quant Ratings service.

The quarter showed what a strong team and category Bed Bath & Beyond is operating in, Tritton said. Bed Bath & Beyond had a solid digital business, but it wasn't easy and convenient for the customer, explained Tritton, who took the helm in November 2019.

Some 80% of the company's customers pre-shop for products online, then either order them or go to the store. It added 6 million new customers that are, on average, six years younger. In other words, Bed Bath & Beyond needed to excel online, he said. The company is doubling down on that front, adding curbside pickup and same-day delivery.

We looked at the charts of BBBY twice this week. On Sept. 29 ahead of earnings and again on Oct. 1. Thursday we wrote that, "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."

BBBY has made a new high for the move up Friday so let's peek at the charts one more time.  

In this daily Japanese candlestick chart of BBBY, below, we can see that prices posted a new high for the recent move up and prices are well above the opening giving us a bullish candle bar right now. The indicators remain bullish. 

 

 

In this weekly close only Point and Figure chart of BBBY, below, we use traditional even dollar scaling. Here we can see a potential price target of $42-$43, but we can also see a potential area of resistance starting around $34 that extends up to $42.

 

 

 

Bottom-line strategy: Even though we can come up with a more bullish Point and Figure target of $43 I would still recommend to traders who may be long BBBY to take some money off the table in the $23 area. After a period of sideways consolidation I might suggest repurchasing BBBY but we are not there yet. 

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