BEST BUY CO INC is setting up nicely for a breakout.

A possible breakout setup was detected on BEST BUY CO INC (NYSE:BBY) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NYSE:BBY.

Analyzing the Technical Aspects

Every day ChartMill assigns a Technical Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple technical indicators and properties.

Overall BBY gets a technical rating of 7 out of 10. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, BBY is only an average performer.

• The long term trend is positive and the short term trend is neutral. The long term trend may just continue or reversal may be around the corner!
• BBY is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so BBY is lagging the market slightly.
• In the last month BBY has a been trading in the 76.39 - 83.36 range, which is quite wide. It is currently trading in the middle of this range where prices have been consolidating recently, this may present a good entry opportunity, but some resistance may be present above.
• When comparing the performance of all stocks over the past year, BBY turns out to be only a medium performer in the overall market: it outperformed 63% of all stocks.
• BBY is part of the Specialty Retail industry. There are 125 other stocks in this industry, BBY did better than 66% of them.

Check the latest full technical report of BBY for a complete technical analysis.

How do we evaluate the setup for NYSE:BBY?

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NYSE:BBY is 9:

Besides having an excellent technical rating, BBY also presents a decent setup pattern. Prices have been consolidating lately. There is very little resistance above the current price. There is a support zone below the current price at 79.93, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

Trading setups like NYSE:BBY

To potentially initiate a trade, it is common practice to wait for the stock to break out of the consolidation zone. This breakout signifies a potential upward movement, and traders may enter the stock at that point. Conversely, if the stock falls back below the consolidation zone, it may be sold at a loss.

Please note that this article should not be construed as trading advice. The information provided is solely based on automated technical analysis and serves to highlight technical observations. It is important to conduct your own analysis and make trading decisions based on your own judgment and responsibility.

More breakout setups can be found in our Breakout screener.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.