The stock price of electronics retailing giant Best Buy Co., Inc (BBY) has seen its fair share of pain over the past three years. What in early 2010 was a stock trading well into the mid $40s wilted down to a shaky chart trading in the low teens by the end of last year. As news around the stock, its ownership and business prospects was running wild, investor emotions took over and many jumped the ship before year end. To get right to the point, since then the stock has ramped over 100% and news around the stock has improved.
In mid-March the stock staged a key breakout past a down-trend line (blue) that dates back to January 2011. After a textbook re-test of the breakout point the stock powered higher again. While likely somewhat immediate-term overbought Best Buy Co., Inc (BBY) now looks to have enough solid footing to move higher still into its next big resistance area near $28. This area acted as resistance in late 2011 and again in the first quarter of 2012 but now has a good chance to be a magnet of sorts for the stock. Broader market pressure would likely also keep upside somewhat capped for this stock, but given the momentum plus the improving single stock story here, Best Buy Co., Inc (BBY) stands a good chance of lifting into the $28 area, which as of Friday’s close is just about 10% higher from here.
