Contextual immersion trading strategy idea.
Chewy, Inc., together with its subsidiaries, engages in the pure-play e-commerce business in the United States.
The demand for shares of the company looks lower than the supply.
This and other conditions can cause a fall in the share price in the next days.
So I opened a short position from $39,09;
stop-loss —...
01/05. After a good swing we are now already in pullback phase testing the fib_0.382 level as support. Still awaiting confirmation by crossing ema_8d and/or oscillators (RSI bounce of 50).
Plan:
Take Profit: < $50
Entry: latest on $44.22 (fib_0.236).
Stop loss: fib_0.382
It is about to Lose Momentum and Turn into a Falling Knife. There is no reason for this company to soar while the whole market is crashing. I believe $29.99 is more of a true value for this company's stock price.
CHWY broke down from a month and a half top below the 27.6 support area. Momentum and trend indicators remain bearish, indicating further downside towards the 23.5 area.
Happy Trading!
IPO lockup period is over, guessing there will be some sellers since the IPO price was $22. There will always be people taking the easy money.
Chart pattern is bullish, so it might get a pop tomorrow, going into next week's puts, will add if it closes the gap above.
If you're bullish on this company, wait a coupe of weeks before entering.
CHWY has been rallying out of the 21-22 area over the past few weeks as the 6-month lock-up period expires on 12/18/2019. The near term target zone is in the 29-30 area.
Happy Trading!
$CHWY is a speculative buy. We are labelling it as speculative because of all the unicorns that have IPO'd this year and have performed horribly. However, a number of people are coming out and saying that the stock is interesting, including Whitney Tilson and Credit Suisse.
Credit Suisse thinks Chewy's (NYSE:CHWY) revenue momentum will translate into...
EARNINGS:
It's a fairly light week for earnings, but there is some highly liquid underlyings to play for volatility contraction:
CHWY (--/74): Monday, After Market Close.
LULU (64/42): Wednesday After Market Close.
COST (44/23): Thursday, After Market Close.
ORCL (42/26): Thursday, After Market Close.
Pictured here is a CHWY January 17th 21 short put at the 20...
