Why Bed Bath & Beyond Stock Needs To Recover Support Thursday

Bed Bath & Beyond Inc. BBBY shares are trading higher Thursday and have recovered pattern support in what traders call a pennant pattern. The stock looks to have no company-evident news to explain the jump in price, but the stock was trending on social media sites throughout the day.

Bed Bath & Beyond was up 13.75% at $15.72 late in Thursday's session. 

See Also: Bed Bath & Beyond Has Only The Baby Boom Working In Its Favor

Bed Bath & Beyond Daily Chart Analysis

• Shares looked to have climbed back above pattern support as the pattern nears its end. If the stock can hold above this level, it may be able to breakout in the coming weeks and possibly see a strong bullish move.
• The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue). This indicates bearish sentiment, and each of these moving averages may hold as an area of resistance in the future.
• The Relative Strength Index (RSI) saw a jump higher and now sits at 53 on the indicator. This shows that there is now more buying pressure in the stock than there is selling pressure. If the RSI continues to rise, it is a bullish sign that the stock could see a breakout in time.

What’s Next For Bed Bath & Beyond?

Bed Bath & Beyond crossing back above the pattern support is a bullish sign that shows the stock is seeing strength once again. Bulls are looking for the stock to now form higher lows and head higher toward the pattern resistance. Bulls are then looking for a cross above the moving averages and for the stock to cross pattern resistance and breakout. Bears are looking to see the stock falls back below the pattern support line and for the stock to be able to hold below it, possibly causing a further bearish push in the future.