BBY runs into sellers again around 64.36
Best Buy Co. Inc. (BBY) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, BBY ended Thursday at 62.88 gaining $2.32 (3.83%) on low volume, strongly underperforming the S&P 500 (6.24%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (BBY as at Mar 26, 2020):
Thursday's trading range has been $3.85 (6.23%), that's below the last trading month's daily average range of $5.69. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BBY.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After trading down to 60.51 earlier during the day, the stock bounced off the key technical support level at 61.48 (S1). The failure to close below the support might increase that levels significance as support going forward. When prices bounced off a significant support level the last time on Monday, BBY gained 16.79% on the following trading day. After having been unable to move above 64.98 in the previous session, the share ran into sellers again around the same price level today, failing to move higher than 64.36.
Though Best Buy is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the close-by swing high at 64.98 where further buy stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Best Buy. Out of 344 times, BBY closed higher 60.17% 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 58.72% with an average market move of 0.19%.