CHWY trade ideas
$CHWY Structure is your FriendJust "KISS"ing.
Keeping it simple stu***
At times its better to keep your chart clean and simple.
It allows you to eliminate the noise & identify the structure that has developed.
At the moment we are at the top of the structure aka resistance.
Since overall structure is upward, I choose not to short or long puts. However, active traders with a larger risk appetite may do so since its not illogical to short resistance.
Some possible plays below:
a) conservative play: take profits (if you're already in) and buy the dip at $46 (with a target at top of structure at $52)
b) medium risk: short this $52 level and cover at $46 (structure support)
c) High risk/high reward: Long $46 strike puts (ill leave expiry dates up to you)
Everyone has their own risk appetite, play what makes sense to you, cheers!
$CHWY forming 2 month #Rectangle #ChartPattern #BreakoutNYSE:CHWY has been trading sideways for the last 2 months forming a rectangle chart pattern with strong resistance at $52.50. Price has tested that level 4 times recently and looking set to breakout to the upside. Once the breakout takes place, the stock will be trading at all time high (ATH).
#KeepItSimple
Long Chewy!!!! Potential reversal $CHWY $AMZN $ PETSsee charts at www.tradingview.com
$CHWY
Entry 44.75
Stoploss 43.75
Target 1 46.50
Target 2 47.55
Why CHWY?
Chewy added a record 1.6 million net active customers in the first quarter, bringing total active customers to 15 million.
Looking ahead
In terms of guidance, the pet product retailer expects revenue in the second quarter to be in the range of $1.62 billion to $1.64 billion, which would represent growth of 40% to 42%. Full-year 2020 sales are forecast at $6.55 billion to $6.65 billion, with adjusted EBITDA to be around breakeven for the year. The Street is currently expecting just $6.41 billion in sales for 2020.
What is Chwy?
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 60,000 products from 2,000 partner brands. The company was founded in 2010 and is headquartered in Dania Beach, Florida. Chewy, Inc. is a subsidiary of PetSmart, Inc.