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.
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).
This week's selection for our Top Call -- VZ (Verizon Communications) -- is less a function of its recent success and more a reflection of Mike's technical setup work that projects gains in the days and weeks ahead. On June 17, one of our MPTrader members (FJB) alerted us to his fundamental work on VZ. After seeing his positive comments, Mike Paulenoff posted the following technical interpretation of the pattern setup:"... somewhere above 36.
On the morning of June 20, Mike Paulenoff posted a heads-up about AMD to MPTrader members, writing:"AMD has been upgraded this AM by Piper Sandler with a Target Price of 175. Piper reiterated its OverWeight rating and has made AMD its top big-cap pick for the remainder of 2024. Technically, AMD has its challenges and its work cut out for it to climb to Piper's 175 target. My attached 4-hour chart setup argues that for starters, AMD needs to climb above 158.
On the afternoon of May 7, 2024, ahead of earnings the next morning, this is what I discussed with MPTrader members about a forthcoming opportunistic technical set in UBER (Uber Technologies):UBER reports earnings tomorrow morning before the opening bell. My Big Picture setup suggests strongly that the bull phase that commenced in June 2022 at 19.90 still has unfinished business on the upside into the 90-100 target window.
This coming week is filled with consequential macro and micro "events," such as NVDA's 10 for 1 stock split, CPI, PPI, and TSLA's annual meeting, during which shareholders will vote to approve or reject Elon Musk's 2018, $56 billion pay package.Arguably, the most significant "event" for the technology sector, in particular, and for the major equity indices is Apple Inc.'s WWDC Conference, which begins tomorrow.