ETSY closes below its opening price unable to hold early session gains
Etsy Inc. (ETSY) Technical Analysis Report for Mar 15, 2019 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, ETSY ended the week 3.13% higher at 69.89 after losing $0.02 (-0.03%) today, underperforming the S&P 500 (0.5%). Trading $0.99 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (ETSY as at Mar 15, 2019):
Friday's trading range has been $1.83 (2.6%), that's below the last trading month's daily average range of $3.18. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ETSY.
Prices are trading close to the key technical resistance level at 71.91 (R1). After having been unable to move lower than 69.39 in the prior session, Etsy found buyers again around the same price level today at 69.66. The last time this happened on February 20th, ETSY actually lost -2.12% on the following trading day.
Although the stock is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could speed up should prices move above the nearby swing high at 72.39 where further buy stops might get activated. Selling could accelerate should prices move below the close-by swing low at 69.39 where further sell stops might get triggered. With prices trading close to this year's high at 73.35, upside momentum could speed up should the share be able to break out to new highs for the year.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. Its common bearish interpretation has been confirmed for Etsy. Out of 152 times, ETSY closed lower 51.32% of the time on the next trading day after the market condition occurred.