The rally has reached the point of hysteria, driven by the prospect of 1,400 Samsung mini-stores in Best Buy showrooms. That’s great news, of course, but not nearly sufficient to clinch a turnaround for one of the last big-box retailers. Keep in mind that I was quite bullish on the stock when the company detailed its recovery strategy early in 2013. I even remained optimistic when the man who created it, a hotshot from Starbucks, quit after just a couple of months. But with the share price at current heights the burden of proof falls heavily on bulls. From a Hidden Pivot standpoint, the forecast is not rocket science: If the stock smashes through the 25.33 midpoint resistance where it ended last week, odds would favor a blowoff to 29.18. ______ UPDATE (April 12, 1:51 a.m. EDT): Sellers have taken charge and seem intent on driving the stock down to at least 23.84, the midpoint support of the pattern shown. If the pivot fails, however, we could see more downside to as low as 22.79 — a 13% correction from the recent high. I’ll recommend bottom-fishing at the lower number via camouflage, or with a 22.85 bid, no stop. _______ UPDATE (April 15, 6:43 p.m. EDT): Because I’d advised buying without a stop-loss, we are long 400 shares with a 22.85 basis. For now, use a fixed stop at 22.69, making it o-c-o with an order to exit 200 shares at 23.80.
