BBY still stuck within tight trading range
Best Buy Co. Inc. (BBY) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
BBY finished the month 14.12% higher at 99.59 after losing $0.44 (-0.44%) today, notably underperforming the S&P 500 (0.77%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (BBY as at Jul 31, 2020):
Friday's trading range has been $2.18 (2.17%), that's slightly below the last trading month's daily average range of $2.34. 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. Prices continued to consolidate within a tight trading range between 96.34 and 100.68 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
After having been unable to move above 100.68 in the prior session, Best Buy ran into sellers again around the same price level today, failing to move higher than 100.47. The last time this happened on Wednesday, BBY actually gained 1.97% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 100.68 where further buy stops might get triggered. Selling could speed up should prices move below the nearby swing low at 96.80 where further sell stops might get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Best Buy. Out of 730 times, BBY closed higher 51.78% 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 60.27% with an average market move of 1.13%.