$BBBY Looking very overbought at at this point, expecting strong resistance around $15.35 level. Playing for a near term retrace.
See chart for possible near and medium term targets.
Opened position in next weeks $16.00 puts for just over a dollar - a nice ITM high delta play.
Note: Informational analysis, not investment advice.
Based on this chart (using fib retracements) and current short float (26% - according to shortsqueeze.com), I have notated possible targets for the next day or two. Could go as high as $18 on a parabolic short squeeze to fill the most recent gap.
BBBY breaking below most recent swing low... into an area of demand/support dating back to 1999-2000. Seasonally, mid-October through the end of the year is the strongest period for BBBY over the last 20 years. We are looking for opportunities to get long - outright stock itself + options. Thoughts?
This is a short trade opportunity coming up, the overall trend is down but I do not want to chase a short at these levels.
When the stock dead cat bounces up to $22 area right onto megaphone resistance, I will grab some put leaps. This company is dead in the water and will churn a bit here at historic reversal levels (2001 and 2008-09).
It's a great opportunity to BUY BBBY now.
Price has reached an all-time low and there are signs of positive divergence.
If price breaks below the support line then this stock is in deep trouble.
This trade setup has an excellent RISK/REWARD ratio.
I am interested in BBBY
I've used 3 timeframes for overall analysis.
Current Price: $20.05
Current Support: $18.70, $16.40
Current Resistance: $20.80, 23.80, 26.25, 30.60
Observation of each #frame:
1. Monthly frame:
- Respected the support at $16.40
- Out of Curved channel resistance to sideway.
- Volume shows increasing quantity for the last 12 months. ...
BBBY reversed to strong side. I bought a small (OTM) 2020 call leap position. I will add if this thing drops to $13-14 though.
I would say right now it has 33% chance to make a trend reversal, 33% chance to stay inside $15-20 range for a extended time (a year or longer) to make bottom, and 33% chance to dip on $13 before doing anything else.