ETSY stuck within tight trading range
Etsy Inc. (ETSY) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
ETSY finished the week -9.52% lower at 77.48 after gaining $3.17 (4.27%) today, strongly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing above Thursday's high at 75.93, the share confirmed its breakout through the previous session high after trading up to $2.22 above it intraday.
Daily Candlestick Chart (ETSY as at May 22, 2020):
Friday's trading range has been $4.75 (6.38%), that's slightly below the last trading month's daily average range of $4.95. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ETSY. Prices continued to consolidate within a tight trading range between 73.11 and 79.28 where it has been caught now for the last three trading days.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on May 15th, ETSY actually lost -8.70% on the following trading day.
Etsy managed to close back above the 20-day moving average at 74.98. The stock found buyers again today around 73.40 for the third trading day in a row after having found demand at 73.11 in the prior session and at 73.33 two days ago.
Although the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Selling might accelerate should prices move below the close-by swing low at 73.11 where further sell stops could get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for Etsy. Out of 71 times, ETSY closed higher 63.38% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 56.34% with an average market move of 1.61%.