Wall Street Vet: Best Buy Is At A 'Very Challenging Level Of Resistance' - Best Buy Co (NYSE:BBY), Amazon.com (NASDAQ:AMZN)

Speaking to Benzinga, Timothy Anderson of MND Partners said that shares of

Best Buy Co IncBBY

are at a "very challenging level of resistance" following its fourth quarter results. "Let's recall that Best Buy was totally left for dead at the end of 2012 as a victim of a doomsday brick and mortar business model and the ascendancy of

Amazon.com, Inc.AMZN

and other online merchandising," Anderson told Benzinga. "Then, proving it was not following Circuit City to the graveyard, Best Buy rallied three fold in 2013." The expert added that in early 2013 Best Buy had another "hiccup" as shares collapsed from the $40 level to around $25 in early January, only to rally 50 percent in to the end of the year 2014.

So Where Are We Now?
Anderson noted that Best Buy's fourth quarter earnings per share of $1.48 topped analyst expectations of $1.36 while revenue growth of 1.3 percent was "a bit light." "On a very long term basis the stock is at a very challenging level of resistance," Anderson explained. "After the 2010 highs of around $45 it peaked out around $42.50 in September of 2013 and $39.50 in October 2014." The expert concluded that shares are currently trading in the higher end of its multiyear range, and it's important to ask what the catalyst is for the stock to break through the highs of the last four years. Disclosure: Author currently holds a position in Shares of Best Buy.

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