Best Buy Price Forecast: Bull Flag Breakout Eyes New Highs

Key Points

• BBY’s stock has rallied 65.6% following a second bottom in May.
• A bullish flag breakout was confirmed above $90.26.
• Support at $84.71 could determine the strength of the breakout.
• A move above $91.27 would signal further upside potential.
• Confirmation of a double-bottom pattern could strengthen the bullish trend.

Market Overview

Best Buy Co., Inc. (BBY) has experienced a significant rally, climbing to a high of $91.27 by late July after establishing a second bottom at $55.10 in May. This impressive 65.6% advance was largely driven by a positive earnings report in late May, which helped the stock reclaim its 200-day moving average and triggered a bullish reversal signal above the previous swing high of $84.99 from October 2025. The recovery also marked a break above the long-term downtrend line.

Bullish Flag Breakout Confirmation

After reaching the July high, BBY experienced a bearish correction, completing a 38.2% Fibonacci retracement of the prior advance, establishing a higher swing low at $76.70. This correction has formed a potential bullish flag pattern. The consolidation low coincided with the company's Q2 fiscal year 2027 earnings report, followed by a sharp advance that confirmed a bullish reversal signal upon breaking above the flag's upper boundary and the recent lower swing high at $90.26. A daily close above this level last Friday confirmed the bullish signal, with the stock reaching a high of $90.82.

Next Support Test and Key Levels

Despite the recent bullish developments, a short-term pullback has occurred, necessitating additional confirmation for the breakout to enhance its potential success. The extent of this pullback and the time taken for recovery will be critical indicators. The 50-day moving average, which acted as dynamic support during the August pullback, is currently near $84.71 and is expected to rise, potentially converging with the October lower swing high, thereby increasing the likelihood of support in that area.

Outlook for Further Gains

A decisive move above the recent high of $91.27 would indicate a continuation of the May rally and further validate the bullish reversal signal from July, as well as the recovery of the long-term downtrend line. Additionally, a double bottom pattern that signaled a breakout during the May rally would also confirm on new highs, reinforcing the bullish outlook for BBY.