Is Bed Bath & Beyond Trade Over?

Published on Monday, 21 January 2013 04:15 Written by TradersHuddle Wire

New York, January 21st (TradersHuddle.com) - Shares of Bed Bath & Beyond, Inc. (NASDAQ:BBBY) ended the trading session lower by $0.13 or -0.23% from its previous close. Bed Bath & Beyond's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Bed Bath & Beyond Inc. (NASDAQ:BBBY) operates a nationwide chain of retail stores. The Company sells a wide assortment of merchandise principally including domestics merchandise and home furnishings as well as giftware, health and beauty care items and infant and toddler merchandise.

Bed Bath & Beyond's current stock range is determined by calculated support defined at $54.49 and by the resistance level at $57.49, which should be used by traders planning their next move.

If traders want to establish a position in Bed Bath & Beyond, they need to pay close attention at the bearish engulfing pattern, since it could mark a trend reversal in the current price action. The Bearish engulfing pattern is a leading warning sign; therefore, traders should closely monitor Bed Bath & Beyond for indications of a trend reversal. Below an Engulfing Bearish Candle Illustration: