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.

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