Benzinga
Published Aug 12, 2022 19:10
Updated Aug 12, 2022 20:11
The Apes Are In Control Of Bed Bath & Beyond Stock Behind As Short Squeeze Continues: What's Next?
Bed Bath & Beyond, Inc (NASDAQ: BBBY) was surging higher on Friday after breaking up from a triple inside bar pattern intraday.
The inside bar pattern is part of a consolidation phase that was needed after the stock skyrocketed 193% between July 27 and Aug. 8 after being targeted as a short-squeeze candidate. The short squeeze may not be done yet, and the bulls are in clear control of the stock.
An inside bar pattern indicates a period of consolidation and is usually followed by a continuation move in the direction of the trend.
An inside bar pattern has more validity on larger time frames (four-hour chart or larger). The pattern has a minimum of two candlesticks and consists of a mother bar (the first candlestick in the pattern) followed by one or more subsequent candles. The subsequent candle(s) must be completely inside the range of the mother bar and each is called an "inside bar."
A double, or triple inside bar can be more powerful than a single inside bar. After the break of an inside bar pattern, traders want to watch for high volume for confirmation the pattern was recognized.
The Bed Bath & Beyond Chart: Bed Bath & Beyond’s triple inside bar leaned bullish because the stock was trading higher before forming the pattern. The break came on higher-than-average volume, which indicated the pattern was recognized and helped the stock receive bullish momentum.
Photo via Shutterstock.
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