Get Best Buy Co., Inc. Reportstock fell less than 1% on Tuesday after the electronics retailer reported earnings.
The S&P 500 is currently down 1.2 percent, and how retail markets have reacted to earnings this quarter Abercrombie & Fitch (ANF) - Get Abercrombie & Fitch Co. Class A Reportis down 30% as of this writing today''s flat price action for Best Buy looks pretty good.
Best Buy stock is hardly expanding. Last week, Walmart (WMT) and Target (TGT) announced an increase in selling pressure in the retail industry. Finally, Best Buy stock is down 50% from its all-time high.
Some investors wonder whether a return on the market will be made a priority as the stock price has decreased in half from the high.
Following the retailer''s earnings drop and reduced its whole-year forecast, some might think it''s unlikely. However, might it be a good thing?
The fact that Best Buy stock isn''t getting crushed right now is a win for the bulls. With the weakness in retail stocks and the market''s poor trading on the day, Best Buy stock has every reason to be down big today. However, its not.
Trading Best Buy Stock
Best Buy stock''s weekly chart.
TrendSpider.com has released a chart.
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Best Buy''s stock has good news and bad news, the second being that the shares have already been reduced in half.
On the downside, there''s a clear level to watch, which is between $68 and $70.
While it''s still early in the week, we''ve had several back-to-back weeks with a low approaching $69.
This area is where the 161.8% downside extension comes into play from the most recent range, and where the 78.6% retracement comes into play from the November high to the March 2020 covid lows.
If thats too much technical jargon, then it''s only to say that the $58 to $60 area is significant. As long as the stock of Best Buy continues to close above it, aggressive purchasers may consider a difficult time in this area.
If the area fails as support, there is no indication where it might fall to. Longer term, I think we might exclude $50 as a potential landing spot if enough negative headwinds continue to work against it.
Keep an eye on this weeks high near $76. If we bounce, that is the first significant area to watch. Over $77.50 and $85 may be in play, along with the 10-week moving average.