BBY Signals SELL On Daily Chart

The Technical Analysis

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Published: August 15, 2021 at 08:46 PM EDT

On August 9, 2021, Best Buy Company Inc stock (BBY) achieved a SELL signal on 4 of our proprietary algorithms indicating near-term downward movement for BBY. Based on historically similar occurrences, the likelihood of this near-term movement is very high. Although this analysis may be technical, it clearly lays out targets for pending price action for BBY. The chart of all potential movement is at the bottom of this article.

Multi-Time Frame Algorithm

This algorithm determines when price direction reverses at the same time on the Daily and 3 Hour chart. There are two buy and sell points for this algorithm. An aggressive signal occurs when price direction changes on both charts at the same time. A conservative signal occurs after the second bar confirms price direction has changed. Aggressive signals can happen without conservative signals. Conservative signals only occur when an aggressive signal also occurs at the same time. The signals appear on other time frame charts in the same position a cross-over occurs on the 3 Hour and Daily charts.

Multi-Time Frame Aggressive SELL - BBY Daily Chart Accuracy

This algorithm accurately identifies SELL points for BBY on daily charts 90.244% of the time it signals. A successful signal means the equity price moves down at least 1% over the next 35 Daily bars. When the algorithm properly performs, success is seen at least 1 trading bars after the signal closing price with a median max gain occurring around 12 trading bars after the signal bar. Successful signals see average reversals of 12.898% from the signal bar closing price and median reversals of 8.635%. The equity reverses greater than two percent 78.049% of the time, greater than five percent 62.195% of the time, and moves beyond ten percent 42.683% of occurrences. The signal does not necessarily mean an immediate price reversal will occur. Price reversal is delayed 80.488% of the time. In these instances, the reversals do not obey the signal and begin sizable downward movement for an additional 1 to 7 bars after the triggering signal occurs. This delay can see the equity rise 1.16% to 5.449% beyond the signal closing price of 112.54.

Analysis Based on This Section

Based on the signal closing price of 112.54, the target price is between 94.81 and 107.76 over the next 2 to 22 bars after the signal. However, the equity may first rise toward a price in the range of 113.85 to 118.67 over the first 1 to 7 trading bars.

Multi-Time Frame Conservative SELL - BBY Daily Chart Accuracy

This algorithm accurately identifies SELL points for BBY on daily charts 88.571% of the time it signals. A successful signal means the equity price moves down at least 1% over the next 35 Daily bars. When the algorithm properly performs, success is seen at least 1 trading bars after the signal closing price with a median max gain occurring around 15 trading bars after the signal bar. Successful signals see average reversals of 11.582% from the signal bar closing price and median reversals of 8.321%. The equity reverses greater than two percent 78.857% of the time, greater than five percent 61.714% of the time, and moves beyond ten percent 38.857% of occurrences. The signal does not necessarily mean an immediate price reversal will occur. Price reversal is delayed 81.143% of the time. In these instances, the reversals do not obey the signal and begin sizable downward movement for an additional 1 to 8 bars after the triggering signal occurs. This delay can see the equity rise 1.365% to 6.153% beyond the signal closing price of 112.54.

Analysis Based on This Section

Based on the signal closing price of 112.54, the target price is between 95.51 and 107.75 over the next 4 to 27 bars after the signal. However, the equity may first rise toward a price in the range of 114.08 to 119.46 over the first 1 to 8 trading bars.

Precise Signal

This algorithm combines the occurrence of Chris Moody's SlingShot indicator with my Multi-Time Frame Algorithm above. The frequency of both indicators occurring on their own is somewhat infrequent, however, simultaneous occurrences is quite rare.

Precise Signal SELL - BBY Daily Chart Accuracy

This algorithm accurately identifies SELL points for BBY on daily charts 100.0% of the time it signals. A successful signal means the equity price moves down at least 1% over the next 35 Daily bars. When the algorithm properly performs, success is seen at least 1 trading bars after the signal closing price with a median max gain occurring around 12 trading bars after the signal bar. Successful signals see average reversals of 11.083% from the signal bar closing price and median reversals of 6.661%. The equity reverses greater than two percent 85.714% of the time, greater than five percent 57.143% of the time, and moves beyond ten percent 42.857% of occurrences. The signal does not necessarily mean an immediate price reversal will occur. Price reversal is delayed 100.0% of the time. In these instances, the reversals do not obey the signal and begin sizable downward movement for an additional 1 to 6 bars after the triggering signal occurs. This delay can see the equity rise 1.165% to 2.394% beyond the signal closing price of 112.54.

Analysis Based on This Section

Based on the signal closing price of 112.54, the target price is between 94.77 and 107.99 over the next 2 to 24 bars after the signal. However, the equity may first rise toward a price in the range of 113.85 to 115.23 over the first 1 to 6 trading bars.

Moving Average Convergence Divergence Extrema

This algorithm follows the common moving average convergence divergence (MACD). It signals a BUY when the largest negative divergences begin to reduce. It likewise signals a SELL when the largest positive divergences begin to reduce as well. There are additional factors required for an actual signal to remove false signals.

Moving Average Convergence Divergence Extrema SELL - BBY Daily Chart Accuracy

This algorithm accurately identifies SELL points for BBY on daily charts 91.034% of the time it signals. A successful signal means the equity price moves down at least 1% over the next 35 Daily bars. When the algorithm properly performs, success is seen at least 1 trading bars after the signal closing price with a median max gain occurring around 14 trading bars after the signal bar. Successful signals see average reversals of 11.96% from the signal bar closing price and median reversals of 9.52%. The equity reverses greater than two percent 84.828% of the time, greater than five percent 66.207% of the time, and moves beyond ten percent 44.138% of occurrences. The signal does not necessarily mean an immediate price reversal will occur. Price reversal is delayed 82.069% of the time. In these instances, the reversals do not obey the signal and begin sizable downward movement for an additional 1 to 9 bars after the triggering signal occurs. This delay can see the equity rise 1.457% to 6.389% beyond the signal closing price of 112.54.

Analysis Based on This Section

Based on the signal closing price of 112.54, the target price is between 94.91 and 107.41 over the next 5 to 28 bars after the signal. However, the equity may first rise toward a price in the range of 114.18 to 119.73 over the first 1 to 9 trading bars.

Summarization of Data

Based on all of the historical datapoints, this analysis has settled on the most likely courses of movement. The red boxes in the image below indicate the likely location of a rise if the signal is not immediately accurate. The green boxes likely hold the extent of signal accuracy. The larger boxes contain all movements aligned with historical data. The smaller box is comprised of the likely half of the median historical data. In this instance, half of the historical data shows the stock may first move up between 113.965 and 119.065. This is the small red box. Likewise, half of the historical target end points finish in the smaller green box. In this instance, the target bottom is likely between 94.86 and 107.755.

Chart displaying Reversals and Targets for BBY

View this interactive chart on TradingView to see where the stock currently is for this idea.

DISCLOSURE: The algorithms and historical accuracy percentages mentioned in these articles are for reference only. Anything can happen in the future when it comes to market movement. Historical price action is not always indicative of future movement. Just because the signals may have a high degree of accuracy, they can always fail. Traders assume all risk to their assets when investing in short or long-term opportunities.

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