Technical Signals Point to a Possible Breakout for BATH & BODY WORKS INC.

Our stock screener has identified BATH & BODY WORKS INC (NYSE:BBWI) as a potential breakout candidate. This technical breakout setup pattern occurs when the stock consolidates after a strong uptrend. While the actual breakout is uncertain, it may be worth keeping an eye on NYSE:BBWI.

Technical analysis of NYSE:BBWI

ChartMill assigns a Technical Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple technical indicators and properties.

Overall BBWI gets a technical rating of 7 out of 10. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, BBWI is only an average performer.

• Both the short term and long term trends are positive. This is a very positive sign.
• In the last month BBWI has a been trading in the 35.51 - 39.91 range, which is quite wide. It is currently trading in the middle of this range where prices have been consolidating recently, this may present a good entry opportunity, but some resistance may be present above.
• When compared to the yearly performance of all other stocks, BBWI outperforms 63% of them, which is more or less in line with the market.
• BBWI is an average performer in the Specialty Retail industry, it outperforms 56% of 120 stocks in the same industry.
• BBWI is currently trading in the middle of its 52 week range. The S&P500 Index however is currently trading near new highs, so BBWI is lagging the market.

Check the latest full technical report of BBWI for a complete technical analysis.

How do we evaluate the setup for NYSE:BBWI?

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NYSE:BBWI is 9:

BBWI has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 39.28. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 37.42, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for BBWI in the last couple of days, which is a good sign.

Trading breakout setups.

A breakout opportunity may arise when the stock surpasses the current consolidation zone and reaches new highs. Traders often wait for this breakout before considering buying the stock. To manage risk, a stop loss order could be placed below the consolidation zone to limit potential losses.

Disclaimer: This article is not intended to provide trading advice. It is crucial to conduct your own analysis and consider your own observations and trading style when making investment decisions. The article solely presents technical observations and should not be relied upon as a sole basis for trading.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.