Open Air Pullback Planning for Best Buy BBY Breakout
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.
Follow along with members of the Daily Commentary and Idealized Trades summaries for real-time updates and additional trade planning.
Corey Rosenbloom, CMT
Afraid to Trade.com
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Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).
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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.