Chewy has been getting decimated and appears to be looking for either a primary wave 2 bottom, or we are still in complex correction mode looking for a cycle II bottom.
Either way I believe there is going to be a retest of the breakdown and we should rally back into the 80s. Chewy looked strong to close out the week even as the market flushed. The weekly candlestick is also showing signs of reversal and closed just above where it needed to.
How to trade this: Bulls: BTD's above 73 a share. Take profits quick on the rallies. If the selling on this name is strong then it will not get to actually touch the breakdown trend line (could still get close but the shorts will begin selling likely around the 30 week MA, 79-80 a share). Stop loss: weekly close beneath the 1.618 (73)
Bears: short the rally as it nears the breakdown / 30 week MA. Stop loss above MA or breakdown line, depends on your risk tolerance.
Either way I believe there is going to be a retest of the breakdown and we should rally back into the 80s. Chewy looked strong to close out the week even as the market flushed. The weekly candlestick is also showing signs of reversal and closed just above where it needed to.
How to trade this: Bulls: BTD's above 73 a share. Take profits quick on the rallies. If the selling on this name is strong then it will not get to actually touch the breakdown trend line (could still get close but the shorts will begin selling likely around the 30 week MA, 79-80 a share). Stop loss: weekly close beneath the 1.618 (73)
Bears: short the rally as it nears the breakdown / 30 week MA. Stop loss above MA or breakdown line, depends on your risk tolerance.