Best Buy (BBY) was last reviewed on May 18 and we wrote that, "BBY is up strongly today and we see only minimal chart resistance overhead. ...New longs should risk a close below $81. The $112 area is our price target."
Prices recently touched $119 and retreated slightly as company execs noted that sales are up 20% for the first three weeks of August, but it may be temporary.
Let's take another look at BBY now that our $112 target has been met and that fiscal second quarter earnings are out.
In this daily bar chart of BBY, below, we can see a strong rally leading up to earnings. Prices are in an uptrend above the rising 50-day moving average line and well above or even extended above the rising 200-day moving average line. The On-Balance-Volume (OBV) line has moved up steadily from early April to new highs to confirm the price gains we have seen. The Moving Average Convergence Divergence (MACD) oscillator has narrowed in recent days, but it is still rising above the zero line.
In this weekly bar chart of BBY, below, we can see that prices broke out on the upside from a wide $50-$90 trading range/consolidation pattern. Prices are above the rising 40-week moving average line. The weekly OBV line moved up to new highs in recent weeks to confirm the price gains. The MACD oscillator is also in a bullish alignment -- rising from above the zero line.
