ETSY falls to lowest close since June 25th
Etsy Inc. (ETSY) Technical Analysis Report for Jul 24, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, ETSY finished the week -1.09% lower at 101.59 after losing $0.87 (-0.85%) today on low volume, slightly underperforming the S&P 500 (-0.62%). Today's close at 101.59 marks the lowest recorded closing price since June 25th. Trading up to $3.33 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (ETSY as at Jul 24, 2020):
Friday's trading range has been $5.21 (5.17%), that's slightly above the last trading month's daily average range of $4.90. 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 notably lower than usual for ETSY.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top and the Takuri Line which are both known as bullish patterns. The last time a Bullish Spinning Top showed up on July 14th, ETSY actually lost -1.71% on the following trading day.
Prices are trading close to the key technical resistance level at 103.94 (R1).
While Etsy is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Takuri Line" stand out. Its common bullish interpretation has been confirmed for Etsy. Out of 37 times, ETSY closed higher 59.46% 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 54.05% with an average market move of 2.50%.