Summary:

  • Best Buy (BBY) rose by 6% on Tuesday, after the Trump administration backed off from its hard stance on new tariffs.
  • Based on its market cycles, we believe the stock still faces risk in the coming weeks.

USTR Robert Lighthizer announced today that, “Certain products are being removed from the tariff list based on health, safety, national security and other factors and will not face additional tariffs of 10 percent.”

He added that tariffs would be “delayed” on certain consumer electronics, such as the mobile phones, laptops, and other products that are sold by Best Buy.

Our analysis focuses on the market cycles for BBY. We believe that the stock is likely still in the declining phase of its current cycle. Our target is $65 over the coming weeks, which marks the 38.2% Fibonacci retracement.

For more from Slim, or to learn about cycle analysis, check out the askSlim Market Week show every Friday on our YouTube channel