Can PetMed Express (PETS) Hold This Support?
PetMed Express, Inc. engages in the provision of markets prescription and non-prescription pet medications, health products and supplies for dogs and cats. Its non-prescription medications include flea and tick control products, bone and joint care products, vitamins, treats, nutritional supplements, hygiene products, and supplies. The prescription medications include heartworm preventatives, arthritis, thyroid, diabetes and pain medications, heart/blood pressure, and other specialty medications, as well as generic substitutes.
Take a look at the 1-year chart of PetMed (PETS) below with added notations:
Chart of PETS provided by TradingView
PETS has formed an important area of support around the $19 level (yellow). The stock has rallied off that mark several times in recent months and has now fallen back down to it again. Even though the stock has gotten another bounce off that support, if the $19 level were to break instead, lower prices would likely follow.
The Tale of the Tape: PETS has key support area around $19. A trader could enter a long position at or around the mark with a stop placed under it. If the stock were to break below the support, a short position could be entered instead.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key…
Christian Tharp, CMT