CHWY trade ideas
CHWY : A PET LOVERS CHARTI know my husky is excited about CHEWY reporting earnings this week. With market profile supply around $80 I must be bearish . There is a lot of areas of supply above those levels. The trendline that began last year in March was finally broken in April this year with a close below the trend line . It rallied afterwards for a few days but all it was, a dead cat bounce, where hopium took over the buyers believing that it was the bottom and the new rally would begin. It continued dropping and it had no problem breaking the trendline once again but with more force to the downside that time. To not my surprise it rallied from an area of market profile demand where a continuation formation was seen kissing the 20MA giving us confluence and a stronger signal to go long, but that is all in the past and what we should focus is on the present and future. The previous trendline has turned into a polarity trendline where previous Support held but now Resistance stands. I am expecting price to hit its head there. I will see how price creeps up prior to earnings and when the time comes I will look to buy the $72 puts, I will do so when price hits $80.23 or if the momentum is to high I will go ahead and wait for it to hit its head on the $86 level of supply. I will not ignore the evidence of changing circumstances but as of now in those levels I am bearish . Not looking to go long anywhere until the $71.25 area. #TTP #TrusTheProcess
Is $CHWY a $100 stock?
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*I work with a team of individuals that does research into potentially undervalued publicly traded companies. We use a mix of fundamental and trend analysis to formulate a trading plan for our securities.*
My team and I have had our eye on Chewy ($CHWY) for some time, and in its current bullish trend we believe this pet-good provider has potential for both short and long term growth. Their most recent earnings report was a breath of fresh air, going against analyst expectation of reported loss. We believe that in its current operations, Chewy could potentially control their market simply based on the large variety of products they provide, as well as the level of convenience they bring their customers. Their lack of a brick-and-mortar setup allows convenient direct-to-consumer distribution, cutting out the middleman of a company such as Petco ($WOOF).
The Coronavirus pandemic shifted consumer wants and needs, many consumers are searching for convenience in the delivery of their goods, and Chewy's operations have been set up to provide that convenience since its founding. Many companies have had to shift their operations to meet this demand, while Chewy has been able to grow in its operations in the past year; the company is in the midst of a 70% growth spurt from in a one year period. We believe this company is worth a share price of $100, and we believe its current valuation of $80 per share is low. My team secured an entry on Friday afternoon.
ENTRY: $80
STOP LOSS: $70
TAKE PROFIT 1: $95
TAKE PROFIT 2: $100
TAKE PROFIT 3: $110
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$CHWY for the rebound? They had production and delivery issues due to covid and this is a knocked down stock.
I like looking for losers that have consolidated, maybe found their bottom and are working on a rebound.
Looking at 10/15 calls for 80 strike. I'd like them for $9.0 each.
CHWY: Bearish Thesis Holds, Point and Figure Updated Price TgtsChwy continuing to get punished to the downside
- We hit the preliminary point and figure target of 70 but further downside is entirely possible
- Using the longer term point and figure distribution we should be going lower
- Using the the wedge (captured via bar charts) confirms this
Fundamentally CHWY is getting dragged down along with the entire IPO basket; higher inflation will lead to further compression of multiples on growth
However, my view is that inflation will be fleeting once more reenter the workforce and shares will be absorbed somewhere in the 50-60 price range
PFP assumed 5 bar reversal, 2 points per unit
CHWY Post ER Run?CHWY Daily TF
Broke the downtrend and forming nice channel up. Trading above the 20/50 day ema. Ideally would like to see a a dip to 75-76 retesting bottom channel line for a dip entry but break of 81 looking at 86.
Targets: 81,86, 93
$CHWY - Diving board breakout watch - target $92$CHWY just formed a diving board pattern. If the breakout happens, it can get to $92.
best case - 92
good case - 87
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How to read my charts?
- Matching color trend lines shows the pattern. Sometimes a chart can have multiple patterns. Each pattern will have matching color trend lines.
- The yellow horizontal lines shows support and resistance areas.
- Fib lines also shows support and resistance areas.
- The dotted white lines shows price projection for breakout or breakdown target.
Disclaimer: Do your own DD. Not an investment advice.
$CHWY with a Bullish outlook following its earnings #Stocks The PEAD projected a Bullish outlook for $CHWY after a Negative Under reaction following its earnings release placing the stock in drift D
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Chewy , bear flagFell out of a bear flag after earnings on selling volume we haven't seen since the last earnings. Usually when a stock falls out of a bear flag the drop matches the length of the pole. which is about 20$ long; that would put its final target and the support of the falling wedge. First target is white trendline 66$.
CHWY potential earnings play and expected moveThe last earnings there was ~20%+ move, the earnings before that was a ~45%+ move. Another quarter of strong earnings tomorrow 6/10/21 could provide momentum to move the stock 20%+ potentially sending the stock in further upward momentum.
CHWYBullish on CHWY, next resistance is around the $82-$84 range. The stock broke through the 20 and 50 EMA today and it looks to run with earnings report tomorrow.
CHWY Falling WedgeAbove $76 CHWY can take off; on the weekly chart it broke out of a falling wedge, they also announce earnings on June 10th which could serve as a fundamental catalyst to get it moving.
Currently in 06/18 $75C (3.45)
CHWY Call option tradeall the details are on the photo, this should be a big one,
I am using heiken ashi candles
Watchlist for the week of june 1-4Stock options watchlist for the week brought to you by Nexus Investments
CHWY safe haven if June dip happensHello everyone!
Today I am looking at CHWY and all I am definitely seeing a potential long here.
Whos is Chewy?
Chewy, Inc., together with its subsidiaries, engages in the pure play e-commerce business in the United States. The company provides pet food and treats, pet supplies and pet medications, and other pet-health products, as well as pet services for dogs, cats, fish, birds, small pets, horses, and reptiles through its chewy.com retail Website, as well as its mobile applications. It offers approximately 70,000 products from 2,500 partner brands. The company was founded in 2010 and is headquartered in Dania Beach, Florida. Chewy, Inc. is a subsidiary of PetSmart, Inc.
Why should you long Chewy?
In my opinion, the management and company spirit is what you should be looking at here. Chewy has singled itself out as one of the most customer friendly pet stores, and has recently suffered a slight dip. Looking at this from a fundamental point of view, it is one of the most promising companies, enjoying amazing growth throughout the pandemic and establishing itself as a staple in the pet food market. It differentiates itself from Amazon and other retailers with the aforementioned warmth towards the customer.
Looking at this from an technical point of view, I see an inverted H&S formed at the end of the dip, and I feel this is confirmed strongly by recent growth. I think growth back towards ~85$ is very much possible here. Keep in mind that at the time of writing, the stock is still at the lowest point it's been in the last 6 months, with a good bullish reversal already confirmed!
On an ending note, I want to say that this might be a safe haven in case the market suffers a dip in June, because of its powerful growth potential and inertia of the bounce. Good luck and make some money!
CHWY bottoming$CHWY looks to have found a bottom here. My target is 108 (the 78% Fib retracement). $CHWY has proven to absorb its pullbacks quickly in the past. The stock is also heavily undervalued, trading at half its enterprise value with positive free cash flow and P/R and P/S under 5. This stock is a strong buy for me right now.
$CHWY Update/ Early entries only 💲Fridays 1.272 ext entry at 63$ is Holding up, we have a daily ib forming at trigger w a pin bar, watch for break of todays high (if inside bar holds up) We are long from 63 (butterfly trigger)
Perfect Descending Triangle Setup $CHWYTextbook Bearish Descending Triangle I posted about 5 days ago, I was bearish on the stock after price fell bellow the 200 EMA and formed the bearish descending triangle that is drawn out. It reached new lows today and could continue to drop into tomorrow.
More downside expectedThe correction isn't over yet. Broke the long term support. Any weakness further will drop this to 50's.
