Another Bearish Consolidation Base Forming: Chewy Inc (CHWY)

Chewy Inc (CHWY) is a leading online seller of branded and private-label pet food. The stock peaked out earlier in the year at $120.00 a share on February 16, 2021. Since that pivot high, the shares have fallen and currently trade around the $85.50 area. Traders and investors should note that the stock has now traded sideways in a tight range for the past 7 weeks. This chart formation is what we technicians call a bearish basing pattern. A weekly chart close below the $75.00 level will likely trigger the next major selloff in the stock. 

The next major support level for Chewy Inc (CHWY) will be around the $60.00 area. This level is where the stock formed a bullish consolidation base before breaking out to new all time highs in November 2020. Often, stocks will be defended by the institutional crowd when it retests prior major support levels.   

Get EVERY trade Nick is taking with his members right here…

Get all of Nick’s OPTIONS Swing Trades Here    <<>>    Get all of Nick’s STOCK Swing Trades Here