BBY closes higher for the 4th day in a row
Best Buy Co. Inc. (BBY) Technical Analysis Report for May 17, 2019 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, BBY ended the week -3.35% lower at 68.93 after gaining $0.19 (0.28%) today, outperforming the S&P 500 (-0.58%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (BBY as at May 17, 2019):
Friday's trading range has been $1.82 (2.68%), that's slightly below the last trading month's daily average range of $1.86. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for BBY.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. The last time this happened on April 23rd, BBY gained 1.45% on the following trading day. In spite of a weak opening Best Buy managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical support level at 67.99 (S1). After having been unable to move lower than 68.06 in the prior session, the stock found buyers again around the same price level today at 68.00.
While the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Higher Closes" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Best Buy. Out of 88 times, BBY closed lower 56.82% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 54.55% with an average market move of -0.59%.