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Chewy (CHWY) Just Reclaimed the 50-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 50-day moving average, suggesting a short-term bullish trend.
The 50-day simple moving average is a widely used technical indicator that helps determine support or resistance levels for different types of securities. It's one of three major moving averages, but takes precedent because it's the first sign of an up or down trend.
CHWY has rallied 8.6% 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.
Looking at CHWY's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 1 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.
Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on CHWY for more gains in the near future.