Shares of online pet supply company Chewy, Inc ( CHWY) gapped higher Thursday on the heels of an earnings and revenue beat Wednesday evening. Let's review the condition of the charts and indicators to see if the strength can continue.
In this daily bar chart of CHWY, below, I can see that CHWY gapped above the 50-day moving average line and approached the underside of the 200-day line. The On-Balance-Volume (OBV) line has been in a decline from early February but that may be ending. The Moving Average Convergence Divergence (MACD) oscillator is just slightly below the zero line. 
In this weekly Japanese candlestick chart of CHWY, below, I see a mixed picture. Prices have been holding around the $30 area and that is a positive. The longer-term trend is down as prices still trade below the negatively sloped 40-week moving average line.
The OBV line is in a longer-term decline but the pace of the decline has slowed down. The MACD oscillator has been narrowing and could be close to a cover shorts buy signal.
In this daily Point and Figure chart of CHWY, below, I can see a recent rally with the gap filled in. An upside price target of $51 is shown now.
In this weekly Point and Figure chart of CHWY, below, I can see the same upside price target of $51. A trade at $53 would be a fresh upside breakout and open the way to further gains.
Bottom line strategy: CHWY may not pullback to "fill" its gap so traders could start to buy CHWY at current levels. If there is a shallow dip or pullback it should be used to round out your position. Risk to $28 for now. The $51 area is my price target.
