Best Buy (BBY) was reviewed at the end of August and I wrote that "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." BBY has not made any meaningful upside progress this month but our stop has not been elected so we are staying with our long recommendation. Let's see if the charts have improved or weakened the past few weeks.
In this daily bar chart of BBY, below, we can see that prices are tracking higher with prices mostly holding above the rising 50-day moving average line. The rising 200-day line is bullish and has not been tested since November. The daily On-Balance-Volume (OBV) line now shows a small rise this month suggesting a little more aggressive buying. The Moving Average Convergence Divergence (MACD) oscillator has stayed above the zero line in September and it could easily turn up to a "buy" if prices strengthen.
In this weekly bar chart of BBY, below, we can see that prices are still above the rising 40-week moving average line. The weekly OBV line is still in an uptrend but it needs to move up to a new high. The weekly MACD oscillator is above the zero line and could turn higher for a buy signal.
In this Point and Figure chart of BBY, below, we can see an upside target of $90.65. A rally to $82.25 will strengthen this chart.
Bottom line strategy: Traders and investors can stay long BBY risking below $75 now. A rally to $82.25 could start the next leg higher.
