CHWY Drops 4.2% Will $32.66 Hold

$Chewy, Inc.(CHWY)$

Chewy Inc.(CHWY) Drops -4.18%: Pet E-commerce Giant Tests Support at $32.66, Bearish Momentum Accelerating

Latest Close Data

CHWY closed at $32.74 on December 15th, down -4.18% (-$1.43), trading 32.7% below its 52-week high of $48.62.

The stock opened higher at $33.98 but failed to sustain momentum, finishing near daily lows.

Core Market Drivers

The pet e-commerce sector faces headwinds from consumer spending concerns and increased competition.

Capital outflows persisted with net outflow of $955.73M over the past week, indicating institutional selling pressure.

Short interest remains elevated at 12.83% of trading volume.

Technical Analysis

Volume of 9.47M shares was below average (Volume Ratio: 0.77), suggesting weak conviction in the selloff.
RSI(6) dropped to 34.23, indicating oversold conditions, while RSI(12) at 40.95 shows bearish momentum.
MACD shows DIF at -0.196 below DEA at -0.277, with histogram at 0.163 suggesting potential divergence formation.

Key Price Levels

Primary Support: $32.66 (December 12th low)
Strong Resistance: $33.46 (recent resistance level)
Immediate Pivot: $34.17 (previous close, now resistance)

Valuation Perspective

Trading at P/E TTM of 67.32x and P/S of 1.08x, CHWY remains richly valued despite the recent decline. Forward P/E of 58.30 suggests high growth expectations are still priced in.

Analyst Targets

22 analysts maintain bullish outlook with average target of $45.74 (39.7% upside potential).

Consensus shows 9 Strong Buy, 12 Buy, and 8 Hold ratings, indicating institutional confidence in long-term fundamentals.

Weekly Outlook

Expect continued consolidation between $32.66-$34.17 range. Break below $32.66 support could trigger further decline toward $30.00.

Conversely, reclaim of $34.17 resistance may signal bounce toward $36.00 resistance zone.

Risk Disclaimer

This analysis is for informational purposes only and not investment advice. Trading involves substantial risk of loss. Past performance does not guarantee future results.

For SG users only, Welcome to open a CBA today and enjoy access to a trading limit of up to SGD 20,000 with unlimited trading on SG, HK, and US stocks, as well as ETFs.

🎉Cash Boost Account Now Supports 35,000+ Stocks & ETFs – Greater Flexibility Now

Find out more here.

Complete your first Cash Boost Account trade with a trade amount of ≥ SGD1000* to get SGD 688 stock vouchers*! The trade can be executed using any payment type available under the Cash Boost Account: Cash, CPF, SRS, or CDP.
Click to access the activity

Other helpful links:

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.