Hey, what's going on team hope that you guys are all having an amazing weekend. I know that you guys love when i make videos about oversold, which means pretty much cheap stocks, so let's go ahead and get right to it. Uh. This is on the weeble platform for those that are going to be asking.

I hope that if you learned something new within this video uh, you guys can consider dropping a thumbs up and, of course, subscribing. So this is ticker symbol c-h-w-y. This is chewy and you might be like well ricky. This is only down three and a half percent.

Why does that matter? Look at the four hour time frame should we actually just recently reported earnings. It was previously bullish right, there's three things that i really like to focus on stocks that are bullish, meaning indicating signs of an uptrend pattern, stocks that are consistent, so you know, chewy meets that criteria and then stocks that are good deals so chewy because of this Earnings report dropped from previous highs of 89 a share all the way back down to previous support level uh, which is what it actually experienced before, as you guys can see right on over here right around 75, a share right now, it's trading at 76, a share So it is down 14 since it reported earnings so now, why is this important right? Well, if right, not not, you know that it has to, but if chewy brand begins to find a support level and then begins to make a recovery from where we're at right. Now to previous highs, even just returning to 89 - that's 17. If it were to return to you know all-time highs, that's a little bit over 27.

This is why i'm talking about it oversold does not mean that it's a buy right now. So let's get that out of our head right. But i know a lot of you guys like focusing on stocks and just adding them to your watch list when they sell off, because it doesn't mean that they have to recover anytime soon. But when they do.

That is when you can begin to. You know, add it to your watch list, set alerts and follow up with it. So then, when you do take advantage of it, you can, you know, get your small piece of that percentage potential that it has for an overall recovery. So as right now, it's trading below the sma line, which it used to you know validate as a support.

That's shooting below the ema line, which is indicating signs of it being a little bit more bearish. The macd is indicating that it's oversold, so is the rsi, but again, indicators are just to be used as a reference, never as a sole reason on why to take a trade. I just wanted to do my part on talking about a stock that is relatively on the cheap side based off of how it used to trade. So let me know what you guys think in the comment section: make sure that you do your own due diligence on understanding, why it missed earnings per share so much and then why it missed revenue.

So you got hit with that double whammy. If you guys look at it on the day chart, you can see that it hit all-time highs this. This was all-time highs during very early 2021., and what does that tell you very early 2021.? Well, let's kind of look back right. What didn't do too well during early 2021 right? Well, you know airlines right they're still being affected, and, although they were making somewhat of a recovery, airlines were not at all-time highs.

So how is something like chewy doing so well during pandemic conditions, and that, should you know, kind of just bring a red flag right of like okay? Well, chewy is a type of company and a type of business that did exceptionally well during pandemic conditions and experience. A peak of demand: does this sound familiar a peak of demand during pandemic conditions and ever since then it's been on a downfall and on a pullback right and that's exactly what they shared on their earnings report. But please make sure that you do your own. Due diligence, i not only want you to understand the technical aspect of hey.

You know chew is a cheap stock, but on the fundamental side on why it's so important to understand that those demand levels right and the demand that that business experience during pandemic conditions is not something that they've been able to keep up with, and the overall forecast For future quarters and for business just in the future, it's just not up to par to what it did experience late 2020 and early 2021, which is just something that you should take into consideration. This is a stock like zoom right. A lot of you guys saw that zoom offered very similar uh patterns when it comes down to you know, it peaked during pandemic conditions and then it pulled back ever since then. This is important to understand what companies and what businesses excel during pandemic conditions and then, as everything resumes back to business as usual, you know demand levels can kind of just correct themselves.

I think that's a really good way to put it. So how is it that this company is going to be able to make up that difference of what it did experience and what it's experiencing now so kind of on the downfall? So i not only wanted to talk about why i saw it to have some form of potential on the technical aspect, but of course making sure that you understand on the fundamental side on why it is pulling back. But please make sure you do your further due diligence, uh learning a little bit more about the company uh, what it reported with earnings and set expectations and guidance that it has in the up and coming future. So let me know in the comment section how you guys think that we did in this video, if you guys would like us to make future videos like this or keep it short and sweet.

Please make sure you drop a thumbs up and, like always, you know tomorrow is labor day. So just make sure you take that into consideration. The stock market is open. We'd love to have you join our free facebook group.

That's that first link down below and if you guys have any videos that you guys would like to suggest that we make in the near future. Please just make sure you comment those down below i'll, see you on tuesday at market open for our live trading session, and if you want to be able to watch metroid live, that's that second link down below until then, like always, let's make sure that we in The year on a green now take it as a team.