CHWY trade ideas
$CHWY Looks good here, broke the bottom wedge.Broke the bottom wedge with some buying, bullish long term imo.
CHWY BounceCHWY touched its previous all time low today, which is now support at the $22.5 level. End of day it bounced off that level creating a doji candle stick, signaling a change in price direction. I entered in at 22.65 and looking for a target price at the $24-24.5 level, where it will then catch up and run into moving average resistance. Looking for a 5-8% bounce.
Taking a bite of ChewyThe chart may not be extremely bullish but we think it offers a good risk reward long into earnings.
It has not been a disastrous IPO for CHWY with reasonable stability in the stock price.
Currently sitting at the bottom of a well defined channel, we think the next move is up.
Folks love their pets and spending is set to soar in the coming years, CHWY also offers a specialized service that AMZN may not be able to beat.
COMPANY PROFILE
Chewy, Inc. operates as a web-based, pet supplies e-tailer. The company is an online source for a wide variety of pet products, supplies and prescriptions for dogs, cats, fish, birds, small pets, horses, and reptiles. It serves its customers through its retail website, www.chewy.com, and its mobile applications. The company was founded by Ryan Cohen and Michael Day in September 2011 and is headquartered in Dania Beach, FL
CHWYCHWY’s innovation outlook is neutral based on a current score of 29 out of 99, underperforming sector average. Insiders sentiment is positive.
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CHWY CollapseLooks like a failed IPO, earnings next week, could break support before then...
Just watching it for now, but feeling bearish....
CHWY Weekly resistances to be testedWatching CHWY for a test of the resistance in the 35.50 area. Best case scenario for the bulls would be an initial rejection to form a daily higher low off of daily EMA supports and then a weekly breakout, having us look back to all time highs.
That said, bulls remain in full control as long as the hourly uptrend remains in tact.
CHWYFat support around 30.8ish. Have to wait and see how does this move on Monday morning. I am personally expecting a pullback which could extend all the way to the resistance line, slightly bullish overall.
Chewy day trade potentialChewy missed analyst earnings estimates by 1 cent per share, but posted good year-over-year improvement. It's down a lot today, but has support around 31 and could rebound from there. Below the previous low of 30.81 would be a good spot for a stop loss.
Chewy downward triangle breakout, at high volume supportChewy made a downward triangle breakout and will consolidate for a little while. It should find some support at this price level, which in the short time since its IPO has been a fairly high volume level. However, Chewy's fundamentals don't check out. It's an unprofitable company and doesn't appear to be making progress toward profitability. It may breach support and fall further.
