A Look at On Balance Volume and Accumulation Distribution for Best Buy Co (BBY) as at September 25 2014

Best Buy Co (BBY) operates retail stores and commercial Websites under the brand names Best Buy, Media Play, On Cue, Sam Goody, Suncoast, Magnolia Hi-Fi and Future Shop. They also operate in three segments: Best Buy, Musicland and International. As at the time of this publication  BBY was trading at:

33.2786

-0.71( -2.09%)

In 2013 the price rose by 244% and as things stand now its Put-Call Ratio is 0.35 and the Short Ratio is a healthy 8.66. The latter indicates that investors are quite sceptical about the upward prospects of BBY. Its 1(year daily) chart indicates that between November 2013 and January 2014 it dropped from $44.23 to about $22.72 and since that drop till date it has climbed 65.46% or thereabout. Its On Balance Volume; a momentum indicator that uses volume flow to predict changes in stock price also reflects the price curve though not absolutely. The curve shown below indicates that the distribution that went below 0 has not recovered. The fact that BBY is trending upwards in price and the Accumulation Distribution curve is gradually trending upwards leaves the case with BBY clear to see; Accumulation is gradually recovering meaning that there may be days that downward corrections will occur. The chart below also clearly indicates why BBY has a Short ratio of 8.66 and most of those shares may have been sold at the mid $40 or higher. We think that what we are looking at is scepticism towards a stock that is moving up offering the balance that the Accumulation Distribution curve does not sufficiently offer. BBY is a Buy and Keep for us as more rallies are written all over it.
Xgains4keeps Ranking for On Balance Volume
Xgains4keeps Ranking for Accumulation Distribution