Best Buy may be your best buy today

FILE - JANUARY 16: According to reports January 16, 2014, Best Buy announced a disappointing holiday shopping sales season with a decline of 2 percent. NEW YORK, NY - AUGUST 20: A Best Buy store is viewed on August 20, 2013 in New York City. Best Buy, the electronics and entertainment retailer, eported its second-quarter profit to jump to $266 million, up from $12 million last year. After a period of struggling, Best Buy instituted cost cutting measures while remaking stores to better compete with discounters and online retailers. (Photo by Spencer Platt/Getty Images)

Remember all the stories about Best Buy ($BBY) just being a showroom for Amazon a little over a year ago. They could not give away merchandise. People were actually ordering items over Amazon on the floor of a Best Buy using their WiFi. Bold. The workers did not care. Or so it seemed.

Maybe nothing has changed or maybe it all has. But I do not hear those stories anymore. And now the stock seems to have bottomed and is reversing higher. The chart below looks pretty good for more upside and with short interest near 9% there is some fuel available to help it higher with a lot of time to run until it reports earnings in mid May.

bby

The chart above shows the move higher in mid February. This exceeded a 61.8% retracement of the downward move from September. The pullback from there retested the 38.2% retracement level and then bounced. The bounce pushed the price up through a falling wedge and this is where it gets exciting.

The wedge break gives a short term target to just over 34, and back to that 61.8% level. But the break higher also creates a Measured Move to about 39, back to the prior high. Momentum is on its side as well. The RSI is making a higher high and on the verge of a move over 60 into the bullish zone. And the MACD is about to cross up, giving another buy signal. Maybe it is time to shop at, I mean for, Best Buy again.

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