The quiet period for the recent Chewy (CHWY) - Get Report  initial public offering has lifted, allowing analysts to issue their ratings and price targets.

Overall? A mix of bullish-to-neutral ratings, which made the 3.2% decline to $33.29 in Tuesday's trading session somewhat surprising. 

Of nine initiations, Chewy nabbed four buy-equivalent ratings. Wells Fargo and Bank of America assigned a $40 price target, while J.P. Morgan and UBS assigned a price target of $42, with the latter representing more than 26% upside from current levels.

Of course, if we're going to talk about upside in the headline, it's only fair we talk about downside too.

Chewy stock received hold-equivalent ratings from the other five analyst initiations on the day, with the lowest price target ringing in at $32, implying almost 4% downside from current levels.

I wouldn't say the field is overwhelmingly bullish, but without a sell rating in the bunch the analysts aren't too bearish either. The average price target comes to $37.44, implying about 12.5% upside from here.

Let's take a look at the charts.

Trading Chewy Stock

Daily chart of Chewy stock.

Chewy got off to a hot start in its IPO, not unlike Fiver (FVRR) - Get Report , Beyond Meat (BYND) - Get Report , Zoom Video (ZM) - Get Report and others. But Tuesday's tepid action shows that demand will cool once these names spend some more time in the market.

In any regard, we have Chewy stock forming a rough wedge, that is, a sideways consolidation made up of higher lows and lower highs. In essence, the stock is coiling for what is usually a larger move out of the wedge.

Investors who are bullish may buy in anticipation of a breakout, while bears may short in anticipation of a breakdown. However, neutral traders will opt to wait and see which way the stock breaks out of the wedge, and continue the trade in that direction.

For Chewy stock, shares are teetering at a noteworthy level. Down near $32.70 marks the low from its first two days of trading in the public market. Further, a move below this area will bring it below range support, negating the stock's trend of higher lows. In this scenario, it will put the post-IPOs lows on the table.

However, if support holds, CHWY stock has a chance to reclaim the 8-day moving average and breakout of its wedge. In that case, I want to see a close over $35 -- breaking its trend of lower highs -- and pushing the stock over its day-one opening price.

If it can, Chewy stock may be on its way to above $37.50 and possibly north of $40.

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