While shares of Best Buy (BBY) have underperformed the S & P 500 in 2025, a recent breakout suggests a “change of character” and further upside potential for this big box retail name. After BBY gapped lower into its April 2025 low, the stock quickly rebounded back to its previous swing high from late March. But while the S & P 500 and Nasdaq-100 pushed higher in May and June, Best Buy settled into a sideways range between support around $63 and resistance at $73. In early September, the stock finally broke above its major resistance level around $73, which also meant a move back above the 200-day moving average. In subsequent weeks, BBY pulled back to retest the breakout level before rotating back higher. This is a common phenomenon in the technical analysis literature, where a breakout is followed by a brief retest before a resumption of the uptrend phase. With improving price momentum in the form of the RSI remaining consistently above the 50 level, Best Buy seems poised to continue an upside move with the February swing high as an initial upside objective. While this short-term upswing suggests a “change of character” to a new accumulation phase, a quick review of the weekly chart shows how Best Buy is actually in a position to complete a bullish rotation above key resistance. The swing highs in August and September have been pushing up against the 150-week moving average, which can serve as a long-term barometer of trend strength. These recent highs have also pushed BBY up against trendline resistance based on the September 2024 and February 2025 highs. If Best Buy can continue the recent upward momentum and propel above $80, that would complete a move above the 150-week moving average and trendline resistance. Given the short-term trend strength represented on the daily chart, combined with the significance of the breakout on the weekly chart, we would expect further upside potential to major resistance around $90. – David Keller, CMT marketmisbehavior.com DISCLOSURES: None. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
