ETSY unable to break through key resistance level
Etsy Inc. (ETSY) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, ETSY finished Thursday at 41.88 gaining $0.59 (1.43%), notably underperforming the S&P 500 (6.24%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (ETSY as at Mar 26, 2020):
Thursday's trading range has been $3.54 (8.57%), that's below the last trading month's daily average range of $4.54. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for ETSY.
One bearish candlestick pattern matches today's price action, the Shooting Star.
Prices are trading close to the key technical support level at 40.10 (S1). Unable to break through the key technical resistance level at 44.02 (R1), Etsy closed below it after spiking up to 44.40 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. When prices bounced off a significant resistance level the last time on March 18th, ETSY lost -11.69% on the following trading day. After having been unable to move above 43.98 in the previous session, the stock ran into sellers again around the same price level today, failing to move higher than 44.40.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Shooting Star" stand out. Its common bearish interpretation has been confirmed for Etsy. Out of 24 times, ETSY closed lower 62.50% of the time on the next trading day after the market condition occurred.