Bed Bath & Beyond (Friday’s close US$30.21) declined from US$79.64 in January, 2015 (not shown), to US$19.07 in November, 2017, (A) below a falling trend-line (dotted line) and then settled in a large falling wedge pattern for almost three years (dashed lines). The recent rise above the top of this pattern signalled a breakout and the start of a new up-trend toward higher targets (B). The stock had a minor pullback recently (C) and now appears to be resuming the up-trend (D).
Behaviour indicators including the rising 40wMA and the rising trend-line (solid line) confirm the bullish status. There is good support near US$19-20 and then again near US$16-17; only a sustained decline below this level would be negative.
Point & Figure measurements provide targets of US$27 and US$29. Higher targets are visible.
stock
Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com
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