After-Christmas Hangover for Best Buy?
12/30/2008 9:18 am EST
By now, I’m sure everyone has heard that this year’s holiday retail sales were less than stellar. One company that is obviously watched for the pulse of retail is Best Buy (BBY).
As you can see from the chart below, BBY rose as the gift-buying season went into full swing, and just before Christmas, started heading south.
My guess is that now that the shopping season is over, BBY will start heading down to its previous lows around $17.00. You might want to see how it behaves as it approaches its 50-day moving average. If it breaks that support, there’s not much to keep it from heading lower very quickly.