WOOF is risky despite strong earnings due to a tendency to give back gains; caution advised against holding through drops.

Wolf reported earnings here. This is Petco Health and Wellness. They reported earnings last night. Uh shares are trading higher after the company reported better than expected Q2 EPS results.

Also, BA raised its price target on the stock from 3 to 325. Look out. 3 to 325, but it is a price target raise. This is a nice little formation here. We popped higher, moved through three.

To me, we've got the VWAP here at 304. Three should also be a level. Um I do a quick peek here at at the short interest. Okay, 20.89% that's high. days to cover 13. Maybe short squeeze on this one. Float much thicker on this though. 93 million.

You do have a trend line on the uh uh top side of the u the price action. So if you start with the initial impulse move in the after hours and take it up through every uh high that we've had since then.

Yeah, I guess there it's not showing one that uh I have here in my broker from this early this morning, but yeah, pretty much the same. Yeah. So, I think that that's probably the overnight session that you have there, but am I am I relatively in the ballpark with these?

that's it's perfectly fine. So, um this uh we'll see if we break to the upside uh you know, out of this formation here. But if we continue to get resistance from that trend line, then this looks like we could uh come back into the 65 EMA, maybe lower.

Woof. Be careful with it. it tends to give it back, although the earnings were very good. So, so here's the interesting thing, Jay. We've got a stock that loves to give back big gains.

Stocks up 20% here today, but we do have high short interest on it. And we do have a quality earnings report under it. So, I I guess be ready for either here, but good uh good mention nonetheless.

If it starts to give it back, don't don't run on hopes and dreams. Just just don't don't take a big loss there.

And looks like uh, Woof uh, popped and then dropped. So, still finding resistance from that uh trend line that we drew.

so woof popped and then dropped this thing going through multiple support levels now.