Chewy Stock Showing Strength: A Pawsible Breakout?

Chewy Inc. (NYSE:CHWY) is currently in Phase 8 of its 18-phase Adhishthana Cycle, and while the stock has faced its share of pain, the structure is beginning to show signs that favor long-term bulls. Here’s a look at the setup through the lens of Adhishthana Principles.

Chewy and Its Cakra Formation

Chewy has consistently followed the Adhishthana Principles, our proprietary framework that forecasts stock behavior through cyclical analysis, incorporating both quantitative signals and behavioral archetypes. 

One notable alignment occurred in Phase 3, when Chewy formed the Adhishthana Yajya. A pattern where the stock traces a hand's arc before plunging sharply. True to the principle, Chewy followed this path and declined by over 72%. While the drop was severe and erased a significant portion of its market cap, it was a move anticipated by the Adhishthana framework.

Now, the stock is constructing what’s known as the Adhishthana Cakra on the weekly chart, a structural channel with an arc that typically spans Phases 4 through 8. This phase usually consolidates the prior fall and sets up for a breakout in Phase 9.

CHWY has so far respected the lower bound of its Cakra, a key technical condition for a bullish breakout once it enters Phase 9 (beginning December 1, 2025). If the stock maintains this structure, the next move could initiate the Adhishthana Himalayan Formation, a multi-phase bullish rally.

Note: To understand the Phase 9 breakout and the Adhishthana Himalayan Formation currently developing in Nutanix, read this article: Nutanix Stock Looks Bullish, But a Peak Could Be Forming.

Investor Outlook

• Current holders: Continue to hold the stock. A breakout in Phase 9 could mark the beginning of a strong upward trend.
  
• Potential buyers: Watch for any dips toward the lower range of the weekly Cakra channel. These could offer high-conviction entry points ahead of the potential breakout.
  

While patience is required, CHWY may be quietly setting the stage for a pawsible breakout.