During Thursday night's Mad Money program Jim Cramer drilled down on a few stocks that are due to report earnings this week. He noted that we'll hear Wednesday from Bed Bath & Beyond Inc. (BBBY) , a non-essential retailer that needs a turnaround plan as it's fighting for survival.
Let's check out the charts of BBBY.
In the daily bar chart of BBBY, below, we can see that the shares made their low in early April and have firmed to test the flat 200-day moving average line. So far it looks like prices are having trouble staying above the 200-day line. The slope of the 50-day moving average line is positive.
The On-Balance-Volume (OBV) line did not bottom until late April and looks like it has been struggling in late June and into July. The 12-day price momentum study shows lower highs from June into July. This is not a large bearish divergence but it is a divergence and should not be ignored as it could foreshadow a sideways trend or even a pullback.