BBY Best Buy Weekly Chart Downward-Sloping Channel Positive Divergence

BBY was receiving a beating yesterday just like HPQ. Traders are concerned about the holiday-shopping season and continue to point towards 'showrooming', where consumers view products at Best Buy but buy at AMZN, as a major negative.  BBY is going to match prices so this will cut into their margins.  The showrooming aspect is overrated, of course it occurs, but the extent is greatly exaggerated. Who does not like to leave the store with the product so the excitement can continue all evening long as the family plays with a new toy? This versus waiting a few days for the package to show up via delivery.

Price tagged the lower rail of the downward-sloping channel yesterday so this would be a logical bounce point.  The green lines show the positive divergence in place. The RSI and stochastics are oversold. BBY is likely basing moving forward and in the weeks ahead should be fine. Also in the mix is the ongoing takeover and buy-out drama. A price of 20-ish has been bandied about which is a long way from 12 especially with cash flow leaking a bit and marging likely moving lower.  A robust holiday season would improve the picture dramatically. Keystone started nibbling on BBY over the last couple weeks and bot yesterday at the lows. Projection is a basing in price moving forward and higher numbers as the days and weeks tick by. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.