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.
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