NEW YORK (TheStreet) -- This week investors learned the housing market is heating up. New home sales rose 2.2% in May to an annual pace of 546,000 units, the highest level since Feb. 2008. Sales of existing home climbed 5.1% to an annual rate of 5.35 million, a rate not seen since Nov. 2009. Bed Bath & Beyond (BBBY), the retailer of many products and gadgets for the home should benefit has home buyers furnishing their new abodes.
Shares of Bed Bath & Beyond has not performed well so far in 2015 with its daily chart showing a "death cross," and with its weekly chart negative. Nonetheless, the stock is poised for a positive reaction to earnings if the company gives investors positive guidance related to the improving housing market.
Analysts expect Bed Bath & Beyond to earn 94 cents a share after the closing bell on Wednesday. Some say that the stock could rally more than usual on an earnings beat on a potential short squeeze. Others say that weaker- than-expected fourth-quarter earnings and rise in costs could spill over into the quarter ending in May.
Whenever there are mixed fundamental opinions about a company pre-earnings, it's important to also look at "must see" daily and weekly charts for the stock and know the key technical levels at which to buy on weakness and at which to sell on strength.
Here's the daily chart for Bed Bath & Beyond.