BBBY breaks above 100-day moving average for the first time since September 26, 2018
Bed Bath & Beyond Inc. (BBBY) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, BBBY finished the week 27.45% higher at 15.23 after surging $0.94 (6.58%) today on high volume, strongly outperforming the S&P 500 (-0.01%). Today's close at 15.23 marks the highest recorded closing price since September 26, 2018. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 14.34, Bed Bath confirmed its breakout through the previous session high after trading up to $1.23 above it intraday.
Daily Candlestick Chart (BBBY as at Jan 11, 2019):
Friday's trading range has been $1.53 (10.82%), that's far above the last trading month's daily average range of $0.74. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for BBBY.
One bullish candlestick pattern matches today's price action, the White Candle.
The share managed to close above the 100-day moving average at 14.53 for the first time since September 26, 2018. When this moving average was crossed above the last time on September 19, 2018, BBBY gained 0.79% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day although could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 11.91.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(14) above 70" stand out. Its common bearish interpretation has been confirmed for Bed Bath. Out of 38 times, BBBY closed lower 65.79% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 63.16% with an average market move of -1.37%.