BBY breaks below 20-day moving average for the first time since April 3rd
Best Buy Co. Inc. (BBY) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, BBY ended the week -2.15% lower at 76.92 after losing $1.06 (-1.36%) today on high volume, notably underperforming the S&P 500 (0.24%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (BBY as at May 22, 2020):
Friday's trading range has been $3.17 (4.01%), that's slightly below the last trading month's daily average range of $3.27. 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 lower than usual for BBY.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on Wednesday, BBY lost -4.37% on the following trading day.
After trading as low as 75.82 during the day, the stock found support at the 100-day moving average at 76.55. The market closed below the 20-day moving average at 77.61 for the first time since April 3rd.
Best Buy shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling might speed up should prices move below the nearby swing low at 73.59 where further sell stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 100" stand out. Its common bullish interpretation has been confirmed for Best Buy. Out of 19 times, BBY closed higher 73.68% 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 57.89% with an average market move of 0.89%.