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Chewy (CHWY) Just Overtook the 200-Day Moving Average
After reaching an important support level, Chewy (CHWY - Free Report) could be a good stock pick from a technical perspective. CHWY surpassed resistance at the 200-day moving average, suggesting a long-term bullish trend.
The 200-day simple moving average is a useful tool for traders and analysts, establishing market trends for stocks, commodities, indexes, and other financial instruments over the long term. The marker moves higher or lower along with longer-term price moves, and serves as a support or resistance level.
CHWY has rallied 27.8% over the past four weeks, and the company is a Zacks Rank #3 (Hold) at the moment. This combination suggests CHWY could be on the verge of another move higher.
The bullish case only gets stronger once investors take into account CHWY's positive earnings estimate revisions. There have been 7 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.
Investors should think about putting CHWY on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.