Shares of Chewy, Inc. (NYSE:CHWY) may have broken resistance. This means the recent uptrend may continue.
There was resistance at the $77.50 because it previously been a support level. What was support can become resistance and that’s what happened here.
Some investors who paid $77.50 for Chewy regret their decision to buy after it traded lower. Some of these remorseful buyers decide to sell but they don’t want to take a loss. So, they offer their stock at the buying price.
If there are enough of these sell orders, resistance will form as it did here., but Chewy's stock is above $77.50 now. The sellers may be finished and that could set the stage for another move higher.
After Thursday's close, the online pet supplies company reported earnings were up 175% over the past year to 9 cents per share, which beat the estimate of ($0.03). Revenue of $2.135 billion beat the estimate of $2.13 billion.
