Bed Bath & Beyond in the Zone
I haven't looked at Bed Bath & Beyond (BBBY) in a while, but when I did, I found something I liked. This trade setup started on the weekly chart with a price cluster of support showing at the $54.16 to $54.55 area. This zone includes a 0.382 retracement of one swing and a 0.786 retracement of another, along with a 1.272 extension of a prior swing up. These price relationships are overlapped by a very important 100% price projection of a prior swing down. Note the first swing down on the weekly chart into the June 2012 low was $17.07 in price. The second swing down illustrated on this same chart was very similar at $17.28. This "symmetry" (similarity of swings in the same direction) was an important component of the buy setup zone in this case. Sometimes major lows are made at these types of projections on the weekly charts. The recent low in this stock was at $54.33, directly within this key zone.
...202 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.
