Best Buy Co. (BBY) is the Stock of the Day at Real Money after the electronics and appliance retailer laid out in a press release a series of financial targets ahead of an investor meeting in New York. Best Buy is shooting for $50 billion in revenue by fiscal 2025. It also plans an additional $1 billion in cost reductions over the next five years. I don't know if this information and strategy will move the stock significantly here on Wednesday, but let's take a look at the charts.
In this daily bar chart of BBY, below, we can see that prices have been in a sideways trading range since early March. Prices have crossed above and below the 50- and 200-day moving averages a number of times and the On-Balance-Volume (OBV) line has been pretty neutral since April. A flattish OBV line tells us that neither buyers nor sellers have been more aggressive. The Moving Average Convergence Divergence (MACD) oscillator has fluctuated above and below the zero line since March.
In this weekly bar chart of BBY, below, we can see that prices have traded around the bottoming 40-week moving average line for most of this year. The weekly OBV line is similar to the daily line -- neutral -- and the MACD oscillator is holding around the zero line for another neutral reading.
In this Point and Figure chart of BBY, below, the software is projecting a downside price target of $55. A trade up at $69.45 could improve the chart.
Bottom line strategy: I am only a technical analyst but I believe there is a difference between announcing a new strategy and actually delivering on a new strategy. For now the charts and indicators of BBY are mostly neutral, so I would expect the sideways trading range to continue.