Best Buy (BBY) was last reviewed in early June when I wrote that "The longer-term charts of BBY are still bullish but the daily chart is a little shaky. Using a $66 sell stop I would hold longs in BBY." Prices have worked higher the past three months and our strategy can be refreshed.
In this updated daily bar chart of BBY, below, we might still this chart a little shaky. Prices gapped to the downside earlier this month to test the 50-day moving average line. The 50-day line has turned flat while the slower-to-react 200-day moving average line is still rising. The daily On-Balance-Volume (OBV) line has not made a new high all year even though prices have made new highs. The 12-day price momentum study shows a high in June and a lower high in August which gives us a bearish divergence when compared to the higher highs in price. This is not a huge divergence but it does say that the rate of the price advance has slowed.
In this weekly bar chart of BBY, below, we can see that prices are still above the rising 40-week moving average line but it won't take much of a decline for this line to be tested and maybe broken. The weekly OBV line is currently pointed down while the MACD oscillator is trying to turn higher. A mixed picture.
In this Point and Figure chart of BBY, below, the computer program is projecting a downside price target around $67.
Bottom line strategy: BBY has traded sideways to higher all year but I don't see a bullish set of indicators. This pattern could continue so traders should raise stop protection to a close below $73.