Technical Analysis of Financial Markets

Sunday, March 18, 2007

Bed Bath & Beyond, Inc. (BBBY)

Bed Bath & Beyond operates a national chain of home furnishing stores across the US. Price action has formed a broadening pattern consisting of a horizontal base with higher highs following an ascending trend line; such a formation usually predicts a short-term bearish reversal. A price target can be derived by computing the difference between the highest high and horizontal base and then projected downwards; i.e. $43-$38=$5; $38-$5=$33. Stop-loss close above $40.50.

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