CHWY Trade on Jul 6, 2020 16:07 from tradelikelarry: Tradervue User Stock Trades.

Trade Planning:

• Daily Chart: Uptrend, Consolidation below ATH.
• TTM Squeeze: Daily
• Earnings Date: 9/8-
• IV: 60%
• Potential Profit: $240
• Potential Loss: $360

Reason For Entry:

• Playing the Daily chart, Put Credit Spread. CHWY is in a pattern of consolidation below its ATH. TTM is in a squeeze and has a Short Float of 28%. Price has historically honored the 50sma and it recently bounced right off of it a few days ago. Watching for CHWY to continue its uptrend to new ATHs.

Reason For Exit:

• CHWY worked its way through the Fibonacci 61.8% level and I closed the trade for a +60% win.

Recap:

• The pattern was correct as CHWY pulled back to a solid support area (50SMA)and bounced right off. I waited for a nice move above the 21ema for my entry and risked 1% of my portfolio. Price action held support and worked its way to the Fibonacci 61.8% level and I closed my trade for a +60% win.