For his second "Executive Decision" segment of Monday's Mad Money program, Jim Cramer spoke with Corie Barry, CEO of Best Buy (BBY) , to discuss the gaming cycle and the company's community initiatives.
Barry said that while some investors are worried about the "gaming cycle," the gaming market has grown far beyond just consoles. Between eSports and social gaming, the gaming market doesn't rely on console sales cycles the way it used to.
Barry also said Best Buy is no stranger to giving back in the communities they serve. The company now operates 46 teen tech centers, which help students learn about technology they wouldn't otherwise be exposed to.
Best Buy has also been active in responsible technology recycling, having processed over two billion pounds of electronic materials. Best Buy will even come to your home to pick up unwanted electronics and ensure they either get refurbished or recycled in a responsible way.
Let's check out the charts and indicators.
In this daily bar chart of BBY, below, we can see that prices are in a downtrend for the past 12 months. Prices are trading below the declining 50-day moving average line and below the declining 200-day moving average line.
The On-Balance-Volume (OBV) line has generally followed the price action but recently the OBV line has not confirmed the new prices lows.
The Moving Average Convergence Divergence (MACD) oscillator is below the zero line in sell territory.
In this weekly Japanese candlestick chart of BBY, below, we can see that prices have been "rolling over" the past two years. BBY is trading below the declining 40-week moving average line. The OBV line shows a slight decline the past two years. The MACD oscillator is bearish.
In this daily Point and Figure chart of BBY, below, we can see a downside price target of $84.
In this weekly Point and Figure chart of BBY, below, we can see a target of $77.
Bottom line strategy: The charts and indicators of BBY look weak and prices could head still lower in the weeks and months ahead.
