U.S. equities apes huddle up!
Bed Bath & Beyond (BBBY) reached the big $30 but found resistance at the level.
Is the meme rally over? Or can bulls still push for an upside breakout?
Bed Bath & Beyond (BBBY): Daily
If you like your equities rallies sharp and meme-induced, then you’ve probably heard of BBBY rising from its $4.55 lows and hitting double digits in a matter of days.
And they say cryptocurrencies are volatile.
The BBBY drama heated up this week when a Monday regulatory filing showed h̶e̶a̶d̶ ̶a̶p̶e̶ Ryan Cohen, GameStop’s (GME) Chairman, owning nearly 12% of BBBY’s shares through his VC firm RC Ventures.His firm then bought call options on Tuesday which allows Cohen to buy shares at a “discount” if BBBY’s shares trade higher before January.
The stock reversed direction on Wednesday, though, after Cohen filed a Form 144 with the SEC that basically shared his plans to sell all his 9.45 million BBBY shares within the next 90 days. Yipes!
BBBY, which only broke the $10 mark late last week, got rejected at the $30 major area of interest and showed its largest bearish candlestick since the rally started this month.
Momentum below yesterday’s lows can drag BBBY closer to the 100 and 200 SMAs near $12.75 and $14.00
Don’t discount an upside breakout though!
Consistent trading above the $30 psychological area opens BBBY to the $33, $35, or even $39 previous inflection points.
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