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Bed Bath and Beyond (BBBY) Completes a Major Double Top

Bed Bath and Beyond (BBBY) Monthly Chart 11/15

(click to enlarge)

Bed Bath and Beyond (BBBY) has been essentially trading sideways since 2012, following a multi-year rally from lows just above 16 to about 80. After this 4-fold increase, price is now back to about 53, which is a multi-year low, since late 2011 as we can see in the monthly chart. I have been monitoring this area for support, but the fact that November's price action is in a strong move to break this support suggests we should respect the completed double top and expect some more bearish outlook in 2016. 


Now, the 35.00 area is a key support/resistance pivot area between 61.8% and 78.6% fibonacci retracement levels. But if we are somewhat conservative on the bearish outlook, we can start looking for support around and even just above the psychological level of 40, around the 61.8% retracement level.