Bed Bath & Beyond Inc. (BBBY) is a major retailer of products for the home – from bed sheets to bath soaps and beyond to kitchen housewares. With home sales rising, shoppers should be looking for last-minute gifts at this consumer goods retail chain.

The stock closed Tuesday at $23.97, down 41% year to date and down 43.4% since setting its 52-week intraday high of $42.35 on Jan. 4. As a sign of recovery, the stock is in bull market territory at 25.7% above its 52-week intraday low of $19.07 set on Nov. 7 as Christmas lists were being written.     

Analysts expect Bed Bath & Beyond to post earnings per share of 37 cents when it reports results after the closing bell on Dec. 20. The big question for investors is whether holiday shoppers went inside Bed Bath & Beyond stores to buy Christmas gifts or clicked to buy them online through Amazon.com, Inc. (AMZN). The earnings conference call is scheduled for 5:00 p.m. (See also: Bed Bath & Beyond Stock: Now Too Cheap to Ignore?)

The daily chart for Bed Bath & Beyond

Daily technical chart showing the performance of Bed Bath & Beyond Inc. (BBBY) stockCourtesy of MetaStock Xenith

The daily chart for Bed Bath & Beyond shows that the stock has been below a "death cross" since the week of June 16, 2015, when it closed at $69.68. A "death cross" occurs when the 50-day simple moving average falls below the 200-day simple moving average and indicates that lower prices lie ahead. Note how the stock ended Tuesday between its 50-day simple moving average of $21.40 and its 200-day simple moving average of $29.78.

The weekly chart for Bed Bath & Beyond

Weekly technical chart showing the performance of Bed Bath & Beyond Inc. (BBBY) stockCourtesy of MetaStock Xenith

The weekly chart for Bed Bath & Beyond is positive, with the stock above its five-week modified moving average of $22.55. The stock is well below its 200-week simple moving average at $51.70, or its "reversion to the mean," which was last crossed curing the week of July 24, 2015, when the average was $66.93. The 12 x 3 x 3 weekly slow stochastic reading is projected to end this week at 40.17, up from 27.69 on Dec. 15.

Given these charts and analysis, my trading strategy is to buy weakness to my semiannual, weekly and quarterly value levels of $22.10, $21.27 and $18.90, respectively. I do not show a risky level at which to sell on strength. (For more, see: Bed Bath & Beyond Stock Breaks Down as Retail Struggles.)

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