Shares of Chewy (CHWY) are taking it on the chin, falling about 5% to $28.70 in Wednesday trading.

The move comes after the company missed on second-quarter earnings estimates, but beat on revenue.

A loss of 21 cents per share missed estimates by 10 cents per share, while revenue of $1.15 billion surged more than 42% year-over-year and beat estimates by $20 million.

However, Chewy stock is paring much of its morning losses as investors dig through the numbers. Indeed, the company reported very strong revenue growth and showed a notable expansion in margins. Further, EBITDA came in ahead of expectations, too.

That's led to a rebound off the session lows, as Chewy stock was down to $27.79 at one point. That also marks new post-IPO lows for Chewy since going public at $22 per share in June.

With the move to new lows, it marks a notable violation on the charts. Let's take a closer look.

Amazon is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells AMZN? Learn more now.

Trading Chewy Stock

Daily chart of Chewy stock.
Daily chart of Chewy stock.

Pet supplies is a booming business, as pet-owners and investors are both well aware. It's also why companies like Idexx Laboratories (IDXX - Get Report) has done so well over the years and why Amazon (AMZN - Get Report) has made a larger push into pet supplies lately.

However, despite the solid growth in Chewy's latest quarter, investors sent shares lower. In doing so, CHWY stock broke below range support between $29 and $29.50, as well as the 61.8% retracement at $29.42 (when measuring down to the IPO price).

So why does this look attractive on the long side? To be frank, it doesn't -- at least not yet.

For bulls to take a bite out of Chewy stock, they'll need to see it reclaim the 61.8% retracement and the $29.50 level. Above that, it could hit downtrend resistance (blue line), but will have at least rallied hard off its new lows and then reclaimed a key area of support.

It's not fully out of the woods in that event, as it still has the 20-day and 50-day moving averages overhead as well as that downtrend resistance mark we mentioned, but it would be an important development.

Something else to watch? If Chewy stock finds the $29 to $29.50 area to be resistance, then shares could be in for more downside. A break below Wednesday's low would signal that more losses are on the way.

In short, see if CHWY stock can reclaim the $29.50 mark.

This article is commentary by an independent contributor. At the time of publication, the author had no positions in the stocks mentioned.