Best Buy (BBY) has just broken out of the base it established back in November 2022. The reaction to the most recent earnings is strong and yesterday June 4th 2024, BBY hit the same high from February 2023.
Idea 1: It can blow through this line top line and continue its climb. If this is the case, I will likely get in when there is a short (a few days to a week or so) pullback into the moving averages.
Idea 2: If it resets a little more, I will look buy once it establishes a base at one of my other support/resistance lines I have marked on here as 1 and 2. I want to see the 200SMA rising in this scenario and the price has to remain above it.
When to abort this idea: If BBY breaks down and doesn't hold above the 200SMA.
Idea 1: It can blow through this line top line and continue its climb. If this is the case, I will likely get in when there is a short (a few days to a week or so) pullback into the moving averages.
Idea 2: If it resets a little more, I will look buy once it establishes a base at one of my other support/resistance lines I have marked on here as 1 and 2. I want to see the 200SMA rising in this scenario and the price has to remain above it.
When to abort this idea: If BBY breaks down and doesn't hold above the 200SMA.
Note
I have added two other SR linesLine 1 at 85.67. This includes the wick of the high made on February 29 and includes several touches from last week where the price was supported at this level.
Line 2 at 83.32 This was at the previous area of rejection starting on February 29th that was revisited and rejected several times.
Also to note: The price is now sitting on the 20EMA.
Scenarios:
#1 BBY will move sideways this week but hold around my 85.67 and the 20EMA.
#2 BBY will continue lower to 83.32, a previous area of rejection, then set up for a rise.
I will consider an entry when the price has moved back above the 10EMA.
For trade ideas and more, sign up for my free weekly newsletter at thetraderreset.com
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.