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.
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