Short

$CHWY - Top of Range

had an unimpeded run up 11.22% today (2/9/22), to rest just below the trend resistance of its broadening formation (the pattern is known for increased volatility and price action as long as price remains within the pattern).

I do show $51.04 as an important level of resistance, which after passing price flattened out, but did hold.

CPI data coming out tomorrow might be enough to push higher, but I think it's more likely that the ticker continues to trade in its current pattern, dropping in the coming days with the $46.47 area as support, with a potential bounce to even $56.02 if the trend continues.

Options flow remains bearish, but slightly less so. I would assumed that traders are playing the broadening formation while it lasts.

TheGritz

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