Shares of home goods retailer Bed Bath & Beyond (BBBY) - Get Report are sharply lower following Wednesday afternoon's disappointing earnings report. The stock is headed for a damaging gap lower as Thursday begins.

This ugly breakdown extends the rather weak action that has dominated the stock's recent trade. Heading into Wednesday's report, Bed Bath & Beyond was working on a four-day losing streak after leaving behind an ominous downside reversal on Dec. 12. The stock has taken out layers of support during this phase and is likely headed lower in the near term.

Once through the early December low of $44.65, Bed Bath & Beyond has very little support in place until the $42 area is reached. From current levels, a selloff back down to this major support zone will take another 7.5% of downside. Once past this important zone, which includes seven monthly lows between $41.90 and $41.15, the stock should once again attract bullish interest.

A hold in this zone would offer patient investors a very low-risk entry opportunity. Until then, Bed Bath & Beyond may prove to be a frustrating long.

On the downside, if the $41 area is convincingly taken out, a drop all the way down to the 2016 low set back in November is on the way.

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This article is commentary by an independent contributor. At the time of publication, the author held no position in the stocks mentioned.