Shares of Best Buy (BBY) - Get Report  on Tuesday are popping about 9% after the electronics chain delivered better-than-expected quarterly results.

The earnings topper is sending the Minneapolis company to 52-week highs, and given the quality of the report, the share-price move shouldn't come as much of a surprise.

Earnings of $1.13 a share topped expectations by 10 cents, while revenue of $9.76 billion grew 1.8% year-over-year and topped estimates by roughly $50 million.

Best Buy delivered more than a top- and bottom-line beat, though. Same-store sales growth of 1.7% topped estimates of 1.3%, while the retailer upped its full-year guidance to well above consensus views.

In short, Best Buy has the wind at its back, and as we approach the busiest shopping season of the year, the bulls are optimistic on Best Buy's prospects. It helps that iPhone demand is strong for Apple (AAPL) - Get Report , which should be an additional driver for Best Buy.

Given its results, Best Buy is a solid pick for Real Money'sStock of the Day.

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Trading Best Buy Stock

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The setup for Best Buy stock is actually rather simple -- and when it comes to trading, the simpler, the better.

The $77.50 to $78 area has been resistance for BBY stock. This area kept a lid on the stock in late July, as well as earlier this month.

Now that the stock is breaking out over this area, it's key for Best Buy to hold above this zone. In short, above $77.50 and Best Buy is OK on the long side. 

If it can stay above this zone, the prior all-time high from August 2018 is on the table, up at $81.44. Ultimately, though, the bulls need to see Best Buy stock hold up over the prior resistance zone. That's what will keep the breakout alive.

As for upside targets, the prior high is the first mark to aim for. Above that is a Fibonacci extension for the one-year range up near $85.

Should the breakout fail and BBY stock pulls back, we need to look at possible support zones. In that case, I'd like to see the 20-day moving average and up-trend support (blue line) hold as support. Below puts the 50-day and 200-day moving averages on the table.

Overall, the charts look pretty darn healthy for Best Buy. Let's see it hold $77.50 as support, signaling that the breakout is intact and that a new wave higher is officially underway.

This article is commentary by an independent contributor. At the time of publication, the author had no positions in the stocks mentioned.