Approaching Support- Best Buy

Published on Friday, 16 December 2011 09:12 Written by Christopher Lynn

New York, December 16th (TradersHuddle.com) - Shares of Best Buy Co., Inc. (NYSE:BBY) are trading very close to calculated support at $23.01 with current price action closing at just $23.36 places the stock price near levels where traders will start paying attention.

Best Buy's current stock range is defined by current calculated support defined at $23.01 and by the resistance level at $28.53, which should be used by traders planning their trades. These support and resistance levels are based on an algorithm of peaks and troughs of the stock price action.

Traders wanting to establish a position should place close attention to Best Buy's price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $28.53 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.

Best Buy Co., Inc. (NYSE:BBY) retails consumer electronics, computers, entertainment software, appliances and related services through its retail stores, as well as its web site.