ETSY rockets, gaining $6.24 (6.09%) within a single day
Etsy Inc. (ETSY) Technical Analysis Report for Jul 29, 2020 | by Techniquant Editorial Team
ETSY finished Wednesday at 108.69 surging $6.24 (6.09%), significantly outperforming the S&P 500 (1.24%). This is the biggest single-day gain in over a month. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 105.68, the stock confirmed its breakout through the previous session high after trading up to $3.37 above it intraday.
Daily Candlestick Chart (ETSY as at Jul 29, 2020):
Wednesday's trading range has been $5.05 (4.86%), that's slightly above the last trading month's daily average range of $4.94. 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.
Three candlestick patterns are matching today's price action, the Bullish Belt-hold and the White Candle which are both known as bullish patterns and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bullish Belt-hold showed up on April 3rd, ETSY gained 21.78% on the following trading day.
Etsy managed to close back above the 20-day moving average at 106.89 for the first time since July 20th.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 115.50, upside momentum could speed up should the share be able to break out to new highs for the year.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Belt-hold" stand out. Its common bullish interpretation has been confirmed for Etsy. Out of 2 times, ETSY closed higher 100.00% 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 100.00% with an average market move of 35.99%.