Looking at the technical picture of the Best Buy (NYSE: BBY) stock on our 4-hour chart, we can see that yesterday, the share price overcame a short-term downside resistance line drawn from the high of May 4th. Such a move could have changed the direction of the current trend, potentially opening the door towards higher areas. That said, we will get more comfortable with further upside, if we see a move above the 81.80 barrier, marked by the low of May 17th.
If that move happens, BBY would also be placed above the 50 EMA, possibly attracting more buyers into the game. The stock could then travel to the 86.71 obstacle, which is the high of May 17th. If that obstacle fails to provide resistance and breaks, the next possible target might be at 89.54, marked by the high of May 12th, or at 92.33, which is the high of May 10th.
The RSI is pointing higher, while sitting above 50. The MACD is also pointing higher and running above the signal line, however the indicator still remains below zero. The RSI is showing positive price momentum, supporting the upside scenario. The MACD supports the idea of waiting for a breakout first.
Alternatively, a drop back below the aforementioned downside line and a move below the 75.88 hurdle, marked by the high of May 24th, could spook the buyers from entering for a while. The stock might travel to the 71.52 zone, or even to the 69.09 area, marked by the current lowest point of May. If the slide continues, a break below the 69.09 area would confirm a forthcoming lower low, possibly aiming for the 63.68 level, marked by the low of April 16th, 2020.
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