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Is Bed Bath & Beyond Stock the New Short-Squeeze Leader?

Bed Bath & Beyond stock is in the new short squeeze leader right now. Here's how high it could go.

Bed Bath & Beyond  (BBBY)  stock has been on an explosive run lately. At today’s high, the stock was up more than 550% from its low on July 27. In other words, the stock has climbed more than six-fold in just 15 trading sessions.

It forces me to wonder if it’s the new short-squeeze leader.

We’ve seen big moves in AMC Entertainment  (AMC) , which rallied 126.1% from its July low to the August high and 183% from the 2022 low to this month’s high. We’ve also seen big moves in GameStop  (GME) , up 69% from the July low to the August high and up 146.8% from the 2022 low to this month’s high.

However, both stocks pale in comparison to Bed Bath & Beyond. The latest move comes after Chairman Ryan Cohen purchased a number of call options in the stock via his RC Ventures firm, which expire in January.

Earlier this month, we outlined a potential move to $20 a share in Bed Bath & Beyond stock. With the latest action, the stock has shot well beyond that area. Let’s take another look.

Bed Bath & Beyond Short Squeeze

Daily chart of Bed Bath & Beyond stock.

Daily chart of Bed Bath & Beyond stock.

With yesterday’s spike, bulls achieved our $20 target, which is where they found the 21-month moving average and the 61.8% retracement of the 2022 range. The stock was able to close above these measures as well, albeit, barely.

Today’s rally sent Bed Bath & Beyond stock up to $30 and we now see it retreating off this level even though it’s still up more than 20% so far on the session.

On the downside, I’m keeping a close eye on today’s low near $23 and the monthly VWAP measure. To lose both marks could force Bed Bath & Beyond stock to retreat further, perhaps back down toward $20.

Below that could open the door down to its 10-day moving average, currently all the way down near $15 but rising quickly.

However, not many investors care about the downside for Bed Bath & Beyond stock. They just want to know how high it could squeeze.

On the upside, keep a close eye on the $30 area. Not only does this zone mark today’s high, but it also marks the 2022 high. A push above this level that doesn’t reverse could open the door to $35.

Above $35 puts the $43 to $43.50 zone in play, which is the 78.6% retracement. Should shares clear this level, it could pave the way to $50 and the 2021 high up near $54.

While it’s hard to imagine Bed Bath & Beyond stock achieving new highs in this climate, it’s something we can’t necessarily rule out. For now though, keep an eye on $23 on the downside and $30 on the upside.