CHWY trade ideas
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CHWY bullish options ahead of earningsYesterday Chewy, Inc. (CHWY) had a strange amount of options, 1.2K Puts and 10.2K Calls, many of them expiring soon,
2022-3-18, with a strike price of $70.
2 Week Range 36.69 - 97.74
yesterday the price was $42.04
On 1/27/2022 Royal Bank of Canada Initiated Coverage for Chewy, Inc. (CHWY) with an Outperform rating and a price target of $77.00.
I aim for the 52.60 resistance short term.
Looking forward to read your opinion about it.
CHWY: Climactic Sell Off CompletedLooks like CHWY had a climactic buyer and may be entering a reversal or range bound environment
- An Automatic Rally happened and the current weakness looks more to a lack of liquidity - which should get bid at the selling climax
- Stock is starting to look good fundamentally as well
- MACD momentum shift
- Good place to test out some small long positions with loose stops
JICPT| Chewy rebounded from 1yr low with trouble zone ahead!Hello everyone. Chewy has been down on the disappointed earning report released on September of last year.
Now, we can see clearly from the chart that the downtrend channel has been well respected with price unable to break every control high.
The nearest bearish structure is around $60-62 where my two anchored vwap lines are sitting above. In my view, this could be a trouble zone which is hard for buyers to break, unless we have surprised figures due on March 29th.
What do you think of chart? Give me a like if you're with me. Thank you for your support.
$CHWY - Top of RangeNYSE:CHWY
$CHWY had an unimpeded run up 11.22% today (2/9/22), to rest just below the trend resistance of its broadening formation (the pattern is known for increased volatility and price action as long as price remains within the pattern).
I do show $51.04 as an important level of resistance, which after passing price flattened out, but did hold.
CPI data coming out tomorrow might be enough to push $CHWY higher, but I think it's more likely that the ticker continues to trade in its current pattern, dropping in the coming days with the $46.47 area as support, with a potential bounce to even $56.02 if the trend continues.
Options flow remains bearish, but slightly less so. I would assumed that traders are playing the broadening formation while it lasts.
$CHWY - Bullish Engulfing Signals Potential ReversalNYSE:CHWY
After a long downtrend, Chewy may have found it's bottom. Jan 24 gave a Bullish Engulfing candle at the $37.11 support.
RSI poking above 50 for the first time since late Nov '21. MACD curling. Buy volume has been increasing since early December '21.
Showing more buy volume and greater daily price action as price moves closer in an expanding pattern to the Aug '21 trend resistance. $51.04 and $56.35 are key levels to break, or a break outside the Aug '21 trend resistance. Otherwise this may be another bear flag in the downtrend.
RSI, MACD, high buy volume, and increase in price action make this a promising watch. It's also possible to see this rejected at resistance and form a double bottom before being able to break out.
Don't anticipate the move, but this is one to keep an eye on in the coming weeks.
Time To Take A Bite Out Of Chewy (NYSE: $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 70,000 products from 2,500 partner brands. The company was founded in 2010 and is headquartered in Dania Beach, Florida.
E-Commerce! CHWY This pandemic is not going away anytime soon. I believe it is a lot like the flu in terms of length, and will be here for the long run. With this being said, this is scaring people from doing the things they used to love doing, such as shopping, going out for a night on the town, or even going to a basic dinner with some family/friends. This mindset has made the industry of E-Commerce go crazy in a positive way. People can do practically whatever they have to do nowadays, online. Buying food, drinks, and other things someone may need is available with one click of a button.
What is Chewy? Chewy Inc. is an American online retailer of pet food and other pet related products based in Dania Beach, Florida. In 2017, Chewy was acquired by PetSmart for $3.35 billion, which was the largest ever acquisition of an e-commerce business at the time! Why is this a good investment for a long term hold? * In 2020, pet ownership in the U.S. rose from 67% of households to an all-time high of 70%, wrote Steve King, president and CEO of the American Pet Products Association (APPA), in a preview of the association’s soon-to-be-released “2021-2022 APPA National Pet Owners Survey.” *
With this in mind, there are so many pet owners and the numbers seem to keep increasing, and I can tell you from EXPERIENCE being a proud dog owner myself, that majority of people spoil their pets JUST like kids, with good food, toys, bones, beds... all the good stuff. This is where Chewy will thrive. Through the pandemic as an E-Commerce company, Chewy has been demonstrating revenue growth, as well as an improving capital position. HOWEVER, they are still having trouble turning a profit the past few quarters due to the fact that their total assets pretty much exactly mirror their total liabilities. On the other hand, a positive thing to note is that their ** third quarter 2021 net sales of $2.21 billion demonstrated 24.1% year-over-year improvement, while the quarterly gross margin of 26.4% indicated year-over-year expansion of 90 basis points. ** That is good to see for bulls!
How will they overcome their lack of profitability? Chewy is looking to expand their business and to add more sources of revenue from more than just selling toys and food. They are looking to expand into the Pet Insurance industry. They recently announced a new partnership with Trupanion, a pet medical insurance provider, which hints at a big move coming. $$$$
If you are a risk tolerant investor, then this is a great pick for you! I have been an investor in this company since mid 2021, and have been following any news/moves by it the entire time. So if you have any questions, comments, concerns, feel free to reach out in the replies! Scared money makes NO money!