CHWY Follows Our Preferred Technical Price Path
![Mike Paulenoff](/assets/cdn/static/mptrader/images/mike-paulenoff.gif?id=853baf5e048aaccf8689bd216813fa18)
by Mike Paulenoff
October 30, 2021 • 8:40 PM EDT
On the morning of October 14, Mike Paulenoff posted the following time-sensitive comment about CHWY (Chewy Inc) to MPTader members:
"CHWY has the right look of a very mature correction from its ATH at 120 (2/16/21) to Monday's (10/12/21) low at 60.45, which represents a 50% haircut from the ATH. As of this moment, with CHWY trading at 62.72, my work does NOT yet have confirmation that THE LOW has been established. My pattern and momentum work are "warning me" that CHWY's multi-month correction is nearing downside exhaustion. To get confirmation that a significant low has been established, CHWY needs to climb and sustain above 66.50. This name should be on our radar now... Last is 62.74."
Fast-forward exactly one week to October 21, and Mike alerted MPTrader members again:
"CHWY is pushing up against first resistance at 66.50, if taken out and sustained, will point to 72-73 in the aftermath of what increasingly appears to be a Bear Trap multi-month corrective low at 60.45 on Oct. 12th... Last is 66.50."
In the ensuing days, CHWY followed Mike's preferred technical price path, breaking out above 66.50. Then last week it surged to and above 72-73 to Friday's (Oct 29) high at 76.35, a full 22% from his first update and 15% above Mike's technical upside reversal signal.
This prompted Mike to make this late-session chart post on Friday:
"It's a dogs world... Since CHEWY turned up, and triggered an initial buy signal on 10/21 at 66.50, it has climbed 10 points and 15%, and its setup indicates this upmove is not done yet... Last is 75.56."
What's next for CHWY heading towards its early December earnings report? And what's ahead for many other individual equity names that Mike and MPTrader members discuss and analyze throughout each trading day, in addition to in-depth coverage of broadly-held macro indices, ETFs, Cryptocurrencies, and Commodities?
Join Mike and our members for discussion of actionable trading and investment ideas.
On August 15, with XLV (Healthcare SPDR, ETF) approaching Mike Paulenoff's target zone (noted in an April 18th post), Mike responded to an MPTrader member's question about whether it was "time to sell and find something with more potential?" Mike wrote: "My short answer: no, it is not yet time to sell (although I will never dissuade anyone from taking profits and from ringing the cash register). My pattern and momentum work argue that upside potential extends from 156 to 161.
On August 6th, when UBER was trading 62, this is what Mike Paulenoff discussed with MPTrader members about the stock's technical setup in the immediate aftermath of the company's quarterly earnings report:"UBER... produced stellar earnings, albeit a bit light on next quarter's bookings. The stock is up 5.9% in pre-market trading within a near-term setup that argues yesterday's spike low at 53.25 ended a 35% correction off of the March high at 82.14.
At 10:45 AM ET on Friday July 26, 2 hours 15 minutes after the release of important PCE (Personal Consumption Expenditure) inflation data, this is what Mike Paulenoff discussed with MPTrader members about SPY (SPDR SP500 ETF):"If I have a concern today it is the unfilled up-gap left behind from last eve's 4 PM ET close at 538.32 to the low of the AM session so far at 541.25.
On June 24, 2024, I posted the following chart-based commentary about PFE (Pfizer, Inc) to the MPTrader discussion room:PFE (Pfizer) has the right look of a setup that is on the verge of entering a central, bullish price thrust from within a December-June rounded bottom formation. Only a failure to push up through and close above the 200 DMA, now at 28.94, followed by a decline that breaks last week's low (6/14) at 26.87 will Neutralize my currently bullish bias... Last is 28.27...
This past Monday, July 15, right after the opening bell, Mike Paulenoff cautioned our members about the technical setup in TSLA (Tesla), writing:"TSLA is in the grasp of a corrective period off of last Thurs (7/11) high at 271.00 that hit an initial low at 231.52 last Friday (7/12). The big rebound off of 231.52 to 262.72 during this AM's pre-market trading has the right look of an "intervening bounce" between two distinct corrective declines (the first being 271 to 231.52).