PetMed Express, Inc. (PETS) made a peak back in January of this year and the decline does not appear over just yet. Let's review the charts and indicators to see how cautious we need to be.
(For more on PetMed, see Don't Forget the Consumer: Cramer's 'Mad Money' Recap)
In this daily bar chart of PETS, below, we can see a downtrend from January - lower lows and lower highs. A decline below the May lows will refresh this downtrend. Prices are trading below the bearish 50-day moving average line and the flat 200-day line.
The volume of trading is on the light side but the daily On-Balance-Volume (OBV) line has been in a decline since January.
The Moving Average Convergence Divergence (MACD) oscillator is below the zero line and bearish.
In this weekly bar chart of PETS, below, we can see a possible top pattern in place since April 2017. Some observers will consider a head and shoulders top formation. Prices are below the cresting 40-week moving average line.
The weekly OBV line shows a decline from April of last year and this suggests a great deal of liquidation and profit taking.
The weekly MACD oscillator is in a bearish sell mode below the zero line.
In this Point and Figure chart of PETS, below, we can see a modest upside price target of $41.73 but a decline to $36.38 will open the way for further declines, I believe.
Bottom line strategy: Two of our three charts of PETS look bearish. A test and break of the $34-$32 area will open the way to further declines. Major support lies in the $25-$20 area.