BBY still stuck within tight trading range
Best Buy Co. Inc. (BBY) Technical Analysis Report for Oct 12, 2018
BBY finished the week -0.14% lower at 72.45 after gaining $1.70 (2.4%) today, outperforming the S&P 500 (1.42%). Today's close at 72.45 marks the highest recorded closing price since October 5th. Trading up to $0.69 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (BBY as at Oct 12, 2018):
Friday's trading range has been $1.70 (2.36%), that's below the last trading month's daily average range of $2.09. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for BBY. Prices continued to consolidate within a tight trading range between 70.17 and 72.96 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top and the Morning Doji Star which are both known as bullish patterns. The last time a Morning Doji Star showed up on May 1, 2015, BBY gained 1.31% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Morning Doji Star" stand out. Its common bullish interpretation has been confirmed for Best Buy. Out of 4 times, BBY closed higher 100.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 50.00% with an average market move of 2.41%.