Is Chewy Getting Ready for a Run?
Pet supplier Chewy has been cooped up like a border collie in a kennel, but some technical patterns suggest it may run again soon.
CHWY doubled in value since mid-September, rallying out of a bullish ascending triangle. Its animal spirits took a nap around the “nice round number” of $100 in mid-December, and the stock has consolidated there since.
Bollinger Band Width has narrowed to the tightest level in 2-1/2 months, highlighting how rangebound it’s been.
Second, notice how CHWY recently wagged some tails under $100 but closed above it. Also notice that today it started to climb despite remaining $0.30 above $100. Is price saying good-bye to double digits?
Third is the large outside day on January 27. That’s when then bull(dog)s tried for a breakout, but were yanked back like a terrier on a leash. CHWY has tied up inside that candle since.
Finally, the 21-day exponential moving average (EMA) has provided support throughout this consolidation phase. That line is now over $100, which could squeeze prices higher.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
CHWY doubled in value since mid-September, rallying out of a bullish ascending triangle. Its animal spirits took a nap around the “nice round number” of $100 in mid-December, and the stock has consolidated there since.
Bollinger Band Width has narrowed to the tightest level in 2-1/2 months, highlighting how rangebound it’s been.
Second, notice how CHWY recently wagged some tails under $100 but closed above it. Also notice that today it started to climb despite remaining $0.30 above $100. Is price saying good-bye to double digits?
Third is the large outside day on January 27. That’s when then bull(dog)s tried for a breakout, but were yanked back like a terrier on a leash. CHWY has tied up inside that candle since.
Finally, the 21-day exponential moving average (EMA) has provided support throughout this consolidation phase. That line is now over $100, which could squeeze prices higher.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.