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Bed Bath & Beyond Inc. (BBBY), the beleaguered retail stock, is starting to show signs of life. On Friday, it gave off three bullish technical signals: the MACD indicator turned intermediate-term bullish, the short-term KST turned short-term bullish, and BBBY stock crossed above its 21-day moving average.

Then, in Tuesday’s session, it completed a Head and Shoulders Bottom, suggesting further upside to the $47.70–$48.40 area.

This pattern is considered one of the most reliable…and, thus, most popular. It occurs at the bottom of a major downtrend, and consists of three successive declines. The lowest is in the middle (the head), with two higher lows on either side (the shoulders). Then, the price breaks up through resistance at the neckline — as shown on the chart — signaling a reversal to a new uptrend.

Volume is a key factor with a Head and Shoulders Bottom. You want to see heavy volume at the left shoulder, another spike at the head (though perhaps not quite as much), and markedly lighter volume through the right shoulder. Then, the breakout should coincide with another volume spike; as you can see on the BBBY chart, that was the case here.

While the stock is giving short-term bullish signals, too (as mentioned before), this particular pattern is considered an intermediate-term signal. Specifically, Profit Scanner is looking for BBBY to reach its target price range — another 7%–8% jump — within about 20 trading days.

Profit Scanner powered by Recognia can help traders of all levels uncover these signals to determine the best timing to buy. Or use Profit Scanner’s technical insight to validate your own trading ideas. See how easy this powerful tool is to help you uncover hidden opportunities in the market.