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Chewy Stock Fell 19%; Should Investors Catch the Falling Knife?

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Chewy stock
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Chewy stock price (NYSE: CHWY) fell 19% in the current month and is down by 45% on a YTD basis. It showed a steep fall and eroded a big portion of its market capitalization. 

CHWY stock price formed a bearish pattern and declined by forming lower low candles. The current price is trading far away from the downward-sloping 50-day and 200 EMA. It indicates a downtrend but the price looks oversold so a minor pullback rally is possible. 

Chewy Inc. released the previous quarter earnings on August 30, 2023. It reported an EPS of 0.04 and revenue of $2.778 Billion. The company beats the EPS estimate by 186.12% and revenue by 0.59%. 

Despite that CHWY stock price reacted negatively and fell 12% after earnings. The correction continues and selling volume is also rising indicating some genuine investors are exiting on higher levels. 

Meanwhile, Chewy stock price broke the $22.00 support which fueled the downfall and the price hit a multi-year low.

Chewy stock price closed the previous session at $19.20 with an intraday decline of -4.71%. The market capitalization stands at $8.26 Billion.

Chewy Stock Price at Multi-Year Low; What Next?

Chewy Stock Fell 19%; Should Investors Catch the Falling Knife?
NYSE: CHWY daily chart by TradingView

Chewy stock price (NYSE: CHWY) is in a correction phase and no signs of recovery or reversal are visible. The recent breakdown looks scary and raises concern for the future outlook of the business. 

Till CHWY stock price trades below $25.00, it is expected to remain in the bear grip. However, the price has corrected a lot so a short-term bounce or a narrow-range consolidation is a must. 

On the higher side, $25.00 will act as an immediate hurdle. So, if any short-term rally comes, the prices are likely to face difficulty in holding the higher levels. 

CHWY Stock Price Fell for Ten Consecutive Weeks


CHWY stock price fell for ten consecutive weeks. It shows that investors had lost confidence in their business and were looking to exit on higher levels. At present, new investors should avoid buying until there are strong signs of reversal in the stock. 

The MACD slopes downward and trades below the zero line. It indicates that the bearish momentum may continue. The RSI at 14 is highly oversold. Due to this, the risk of a short squeeze is also high.


Chewy stock price (NYSE: CHWY) fell 19% in the current month. It formed a bearish pattern and hit a multi-year low. The analysis suggests that the CHWY stock has corrected a lot so a narrow-range consolidation or minor pullback is possible.

Technical Levels
  • Resistance levels: $25.00 and $32.00
  • Support levels: $18.00 and $16.00

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Nancy J. Allen
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