Potential Best Buy Sell
For short-term
opportunities, some of the best setups are those that can be seen on weekly
charts. There is more patience involved, but the odds are usually better
because the longer-term support and resistance is generally harder to penetrate
than short-term support and resistance. Thus, a penetration is more likely to
be explosive in nature.
Best Buy
(
BBY |
Quote |
Chart |
News |
PowerRating)
has pulled back to support at the bottom of a trend channel, its 38.2%
retracement from the December 2000 lows to the July 2001 highs, its 36-week moving
average, and its three-month trading range.
Those looking for
shorts will see an opportunity here because of BBY’s long-term head-and-shoulders formation. A short-term bounce could occur, but ultimately, if the
support off these multiple patterns is broken, we could see a substantial
downward acceleration from here.
Eddie