ETSY closes higher for the 4th day in a row
Etsy Inc. (ETSY) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, ETSY finished the month 31.18% higher at 106.23 after gaining $3.34 (3.25%) today, significantly outperforming the S&P 500 (1.54%). Today's close at 106.23 marks the highest recorded closing price ever.
Daily Candlestick Chart (ETSY as at Jun 30, 2020):
Tuesday's trading range has been $4.60 (4.45%), that's slightly above the last trading month's daily average range of $4.57. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for ETSY.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on June 25th, ETSY gained 1.24% on the following trading day.
Buyers managed to take out the key technical resistance level at 103.94 (now S1), which is likely to act as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Higher Closes" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Etsy. Out of 40 times, ETSY closed lower 57.50% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after two trading days, showing a win rate of 55.00% with an average market move of 0.08%.