$CHWY - Bullish Engulfing Signals Potential Reversal

5 thg 2, 2022

CHWY

After a long downtrend, Chewy may have found it's bottom. Jan 24 gave a Bullish Engulfing candle at the $37.11 support.

RSI poking above 50 for the first time since late Nov '21. MACD curling. Buy volume has been increasing since early December '21.

Showing more buy volume and greater daily price action as price moves closer in an expanding pattern to the Aug '21 trend resistance. $51.04 and $56.35 are key levels to break, or a break outside the Aug '21 trend resistance. Otherwise this may be another bear flag in the downtrend.

RSI, MACD, high buy volume, and increase in price action make this a promising watch. It's also possible to see this rejected at resistance and form a double bottom before being able to break out.

Don't anticipate the move, but this is one to keep an eye on in the coming weeks.