Apr. 1, 2009 (Investor's Business Daily) -- When things looked worst for PetMed Express (PETS), its chart told a different story.

The provider of pet medications is shaping a cup-with-handle base that started in mid-January, after a faulty breakout.

The cup is 30% deep and made its bottom in late February to early March. Despite erasing all gains since October, there was some hidden strength.

The three weeks that made the bottom of the cup were tight in trading action. When tight action occurs along the lows of a base, it's a sign of institutional support.

The week of March 13, PetMed jumped 12%, and it's been rising ever since.

On March 23, the stock hit its recent high of 17.21. It then pulled back 8% over five days.

This makes it a possible handle.

The handle, in all, is now seven days long and has a potential buy point 15f 17.31.

The right side of the base was formed a bit hastily, but nothing that should be much of a concern.

Volume is on a downward trend, with average weekly volume dropping from over 3 million shares in December to just 1.2 million today.

PetMed's Accumulation/Distribution Rating has climbed to new highs.