BBBY is surging this morning after news the retailer has selected a new CEO.

BBBY is up over 20% this morning on executive news: https://seekingalpha.com/news/3504849-bed-bath-and-beyond-plus-15-percent-nabbing-target-exec

At the August lows BBBY was down over 60% from its 2019 highs and off just over 90% from its all time highs set back in 2013. The August 2019 close was the stock’s lowest monthly close since August 1998.

Heading into today’s news BBBY was tracing out an orderly bull flag after rallying nicely off the August lows. This morning’s powerful breakout move has left behind layers of support. Initial support level is the July highs($12.00). A more solid support zone rests between $11.00 and $10.00. This area includes the September and early October highs as well as well as today’s breakout gap.

BBBY sports a fairly high short interest ratio(8.6).

With today’s big gain BBBY is now up 67% from the 2019 lows. It’s likely the 200 day moving average, which is now within easy striking distance, will provide some resistance. A pullback from this area($13.00) would provide a low risk entry opportunity.

At time of publication we do not have a position in BBBY.