Open Air Pullback Planning for Best Buy BBY Breakout

Nov 21, 2014: 3:07 PM CST

Best Buy (BBY) shares continued their uptrend with a breakout gap into “Open Air.”

Let’s highlight this chart and plot a “pullback” or else surprise breakout plan.

Here’s the Daily Chart:

Best Buy (BBY) has charted three symmetrical bullish swings (blue lines) from the May 2014 lows.

This time, we see an extension and bullish gap event above the $36.00 resistance high.

It’s likely too late – at least from a probability standpoint – to participate in this swing and instead we’re planning a pullback/retracement just like the end of the prior two blue line bullish swings.

The logical target appears on the Hourly Chart below:

Again, we see the highlighted “Value Area” and the breakaway gap recently that thrust shares to new recovery highs.

A logical pullback targets the $35.50 to $36.00 zone for aggressive traders to attempt a short-sale position (or take profits).

Otherwise, we can’t assume logic will prevail in this bullish market and thus will avoid the short-side of this stock above $38.50 and $39.00.

If so, it could quickly extend the uptrend and bullish impulse higher in a short-squeeze breakout event.

Nevertheless, monitor price neutrally into the $38.00 per share “open air” pocket and otherwise either trade a logical pullback lower, or look to buy on the end of the pullback into support which could target the $35.00 per share level again.

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Corey Rosenbloom, CMT
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2 Comments

2 Responses to “Open Air Pullback Planning for Best Buy BBY Breakout”

  1. Arsalan Says:

    Pullback is something that not always happen but this usage of EMA is wonderful and to see the kind of accuracy is simply mouth-watering. I feel very happy following this site as this is truly special for newbies to learn from. I practice mostly on demo account with OctaFX broker but in a thriller style and that’s with their superb cTrader demo contest, it has 400 USD prize and I can participate every week so due to this in I stay motivate to learn plus chance to win the prize.

  2. Kadir Says:

    The trend is definitely very strong, but we got to be careful that we don’t do anything silly or else we could suffer. I usually follow trend when it’s early days instead of at this stage where it’s at peak. I love doing long term trading with following trend and thanks to OctaFX broker, I am able to do it nicely which is through their swap free account option, it’s cool and saves a lot of money for me which is often lost due to overnight trades and makes me so much comfortable.