Shares of Bed Bath & Beyond (BBBY - Get Report)  were surging Thursday, closing higher by 21.6% at $12.08.

The stock was ripping higher after Bed Bath & Beyond snagged Mark Tritton as its new CEO. Tritton was the CMO for Target (TGT - Get Report) , a retailer that's been red-hot and has held its own against Amazon (AMZN - Get Report) .

The stock even landed a new Street-high price target of $16 from Telsey Advisory Group. Despite the big move on Thursday, the target still implies more than 30% upside from current levels.

Given the quality of its new CEO, it's no wonder Bed Bath & Beyond stock is rallying with such force. That said, it's also sitting on enormous losses. It makes Bed Bath & Beyond a perfect candidate for Real Money's Stock of the Day

The question now becomes, can BBBY stock continue to fight through various resistance marks and push higher?

Amazon is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells AMZN? Learn more now.

Trading Bed Bath & Beyond Stock

Daily chart of Bed Bath & Beyond stock.
Daily chart of Bed Bath & Beyond stock.

A glance at the daily chart above shows Bed Bath & Beyond stock launching in between two notable levels: The 61.8% retracement and the 200-day moving average.

So far, the 200-day moving average at $12.66 is acting as resistance. From here, it would be constructive to see BBBY stock hold the 61.8% retracement as support, and work on reclaiming the 200-day moving average.

If it can do that, the 50% retracement at $13.44 is put on the table, followed by the 38.2% retracement at $14.89. Above that and $16 is the next upside target. 

Should Bed Bath & Beyond stock fail to hold the 61.8% retracement as support and the stock takes out its session low, currently at $11.75, bulls will desperately want to see the $11 breakout level hold.

$11 was support in late June and early July, but has been resistance so far in September and October. With rising uptrend support (purple line) squeezing Bed Bath & Beyond stock up against $11, shares were forming the bullish pattern known as an ascending triangle.

Now over resistance, it's critical BBBY stock holds this level should it correct down that far.

According to ShortSqueeze.com, Bed Bath & Beyond stock has more than 50% of its float sold short. With such a sharp rally on Thursday, it could trigger a short squeeze, forcing bears to buy to cover their positions and potentially driving the stock even higher. A move over the 200-day moving average may be what's needed to accelerate this move.

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