Best buy looks like a buy now that is has dropped like a stone. It probable is for a few dollars but looking at the big picture we do not trust this stock. The pattern looks a lot like a large A down followed by a B up. Next would be C down and presently we should be in 4 of 3 of C, so 5 of 3 and 4 and 5 of C still to go. This could get the stock to $10 and lower. We would leave it alone.
Piper Jaffray just upped their outlook on this stock with a target of $26. Good time to sell at $20.25 for a 72% gain. RSI and MACD are worrisome at these levels. Remember. nobody has ever lost money taking profits.
The usual then-and-now format, then being 31 Dec. , two months ago;
From about $11.75 to $ 18.75 is a cool $6 up in 2 months which is equal to $36 per annum or 306%, it may go higher if the analysis then was correct.
On the side , we noticed that JCP, J.C. Penney was downgraded by Citi and a number of other analysts. This is when the stock is rapidly approaching our target of $13.75 or so. Be ready!
Chances are that this stock will get to at least $14.50/$16. The above is a wild guess as to how it might do it. Presently you are up about $2 on $12 but if that can be stretched to $3 on $12 by waiting another week or so that would constitute a nice 25% in less than a month. $16 is at the top of the range as possible overlap would occur at about that level, so that may stop the rise. We’ll see.