Keep an eye on Best Buy (BBY) heading into the new year.
After gapping from $140 to $99.52, the retailer appears to have caught strong support dating back to December 2020. RSI, MACD, and Williams’ %R are also oversold, and are overdue to pivot higher. If you pull up a two-year chart, you can see that the last two times these indicators became this oversold, the stock bounced back nicely.
It could happen again with the latest pullback, too. From a current price of $99.52, we’d like to see an initial bearish gap refill around $140, near-term. Helping, Director Patrick Doyle recently bought 20,000 shares of BBY for just over $2 million on December 3.
With a good deal of weakness priced into the stock, we believe it’s overdue to bounce.