During Thursday's Lightning Round segment of Mad Money one caller asked Jim Cramer about Chewy Inc. (CHWY) . "I'm partial to the company, but it's hard to value and has run up a bit too much to buy it right now," Cramer replied.
We last reviewed the charts of CHWY way back on June 10 and wrote that, "My youngest son and daughter-in-law have several pets and have been ordering from Chewy from before the pandemic. Pets rule? I don't know about that but the charts and indicators of CHWY are bullish. Traders could go long CHWY at current levels risking a close below $44 with a potential upside price target in the $80 area."
The shares have nearly reached our $80 price target so let's check out the charts again.
In the updated daily bar chart of CHWY, below, we can see that prices have tripled since the pandemic low in March. CHEWY is trading above the rising 50-day moving average line and above the rising slower-to-react 200-day moving average line.
The On-Balance-Volume (OBV) line tells us the right story with its message of aggressive buying. The Moving Average Convergence Divergence (MACD) oscillator has been above the zero line for most of the time since March.