Specialty retailer Bath & Body Works (BBWI) has soared up the rankings in the SIA S&P 500 Index Report over the last few days, climbing up out of the red zone and returning to the Green Favored Zone for the first time since December. Yesterday, it finished in 111th place, up 27 spots on the day and up 231 positions in the last month.
Last week, Bath & Body Works decisively broke out of a downtrend, completing a bullish Falling Wedge pattern, regaining $50.00 and climbing back above its 50-day moving average. This week, the shares have continued to climb, confirming the start of a new upswing and trending toward a test of $60.00 where a breakout would confirm the start of a recovery trend.
Should that occur, next potential upside resistance may appear near $62.50, $70.00 or $76.50 based on previous candle highs and lows. Initial support appears in the $50.00 to $51.00 area, near its recent breakout point and the 50-day moving average.
A selloff in Bath & Body Works (BBWI) shares which had started back in November bottomed out earlier this month with a successful retest of support near $45.00. Since then, the shares have started to bounce back with bullish Double Top and Spread Double Top breakouts signaling the start of a new recovery upswing.
Initial resistance may appear near $65.00 where a round number and a horizontal count converge, followed by $69.00 based on previous column highs. Initial support appears near $52.30 based on a 3-box reversal.
With a its bullish SMAX score increasing to 8, BBWI is exhibiting strength against the asset classes.
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