BBY pushes through Monday's high
Best Buy Co. Inc. (BBY) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, BBY finished the month 11.76% higher at 87.27 after gaining $0.94 (1.09%) today, slightly underperforming the S&P 500 (1.54%). Today's close at 87.27 marks the highest recorded closing price since February 21st. Closing above Monday's high at 86.78, the market confirmed its breakout through the prior session high after trading up to $1.44 above it intraday.
Daily Candlestick Chart (BBY as at Jun 30, 2020):
Tuesday's trading range has been $2.59 (3.01%), that's slightly below the last trading month's daily average range of $2.75. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BBY.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on June 2nd, BBY actually gained 2.10% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
With prices trading close to this year's high at 91.99, upside momentum could accelerate should the share be able to break out to new highs for the year.
Among the three 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 54.55% 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 -0.45%.