Bed Bath & Beyond (BBBY) Sees Positive Same Store Sales – Cycles Point Higher Near-Term

This morning, Bed Bath & Beyond NASDAQ: BBBY released their 8-K.

In the 8-K, the company announced they had reopened almost all retail stores after closing due to the COVID-19 pandemic.

For the month of June, Bed Bath & Beyond’s (BBBY) total comparable sales were positive and the company generated positive cash flow.

As part of the company’s restructuring plan, Bed Bath & Beyond expects to generate between $350M – $450M in asset sales.

Sign up for our FREE newsletter
and receive our best trading ideas and research

In addition, they are in the process of reducing inventory at retail stores by up to $1B. As of the end of fiscal Q1, the inventory reduction program is more than halfway complete.

Bed Bath & Beyond’s stock price is up over 6.5% midway through Tuesday’s trading session. Let’s review our weekly cycle analysis.

Bed Bath & Beyond (BBBY) Weekly Chart

bed bath beyond stock bbby price cycle analysis positive sales news july 14

At askSlim we use technical analysis to evaluate price charts of stocks, futures, and ETF’s. We use a combination of cycle, trend and momentum chart studies, on multiple timeframes, to present a “sum of the evidence” directional outlook in time and price.

askSlim Technical Briefing:

The weekly cycle analysis suggests that BBBY is due to form a mid-cycle low in an overall negative pattern. The mid-cycle low is due to form in the middle-to-end of July. The next dominant cycle low is due between the end of October and early November.

bed bath beyond stock price rally higher bullish indicators july 14

On the upside, there intermediate-term resistances from 10.61  12.30.

On the downside, there are intermediate-term supports from 8.39 – 7.44.

For the bulls to regain control of the intermediate-term, we would need to see a weekly close above 14.71.
askSlim Sum of the Evidence:

BBBY is due to form a short-term low in the middle-to-end of July. There is a likelihood that the stock retests the intermediate-term resistance zone beginning at 10.61 by the end of August. After that, risks increase for another move back on the downside.

Twitter:  @askslim

Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.