Chewy (CHWY) Recently Broke Out Above the 20-Day Moving Average
Chewy (CHWY) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, CHWY crossed above the 20-day moving average, suggesting a short-term bullish trend.
A well-liked tool among traders, the 20-day simple moving average offers a look back at a stock's price over a 20-day period. This is very beneficial to short-term traders, as it smooths out short-term price trends and gives more trend reversal signals than longer-term moving averages.
The 20-day moving average can show signals that are similar to other SMAs as well. If a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.
CHWY has rallied 13.9% over the past four weeks, and the company is a Zacks Rank #1 (Strong Buy) at the moment. This combination suggests CHWY could be on the verge of another move higher.
The bullish case solidifies once investors consider CHWY's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 7 higher, while the consensus estimate has increased too.
Investors should think about putting CHWY on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.
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Chewy (CHWY) : Free Stock Analysis Report