Best Buy Expecting Resistance Soon?

Published on Friday, 03 September 2010 07:36 Written by Christopher Lynn

New York, September 3rd (TradersHuddle.com) - Shares of Best Buy Co., Inc. (NYSE:BBY) closed the trading session at $33.46 near its 50 day moving average currently set at $34.05. Best Buy's price action is below this important level, which makes the stock difficult to buy, as there will certainly be resistance as it approaches its 50 day.

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.

Latest price action range, defined by a peaks and troughs algorithm places calculated support at $30.90 and calculated resistance at $36.21. These levels will be closely watched by traders, as they provide great insight into the latest price dynamics defined by Best Buy shares.

Traders should evaluate their trade if they want to establish a position on Best Buy given the resistance expected as the stock approaches the 50 day moving average. A trade might materialize as the stock manages to break this important level, as it could be used as support going forward, however until the break materializes buying the stock is nothing different than flipping a coin. Other levels that traders will be evaluating are the ones defined by the peak and troughs algorithm that provides great price level reference points.