We reviewed Bed Bath & Beyond, Inc. (BBBY) on July 6 ahead of fiscal first-quarter numbers, which were released Wednesday night. BBBY missed quarterly estimates and said it was planning to close 200 stores over the next two years to adjust to the new reality in retail.
On Monday I wrote, "BBBY could surprise on the upside but my sense of the charts and indicators is that the stock could drift sideways to lower in the weeks ahead." Let's check out the charts again now that traders can react to the fundamental numbers.
In the daily bar chart of BBBY, below, we can see that prices failed at the underside of the declining 200-day moving average line. The daily On-Balance-Volume (OBV) line stalled and the Moving Average Convergence Divergence (MACD) oscillator has crossed to the downside for a take profits sell signal.