ETSY finds buyers around 108.54 for the third day in a row
Etsy Inc. (ETSY) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ETSY finished Wednesday at 108.80 losing $2.20 (-1.98%), notably underperforming the S&P 500 (-0.46%). Today's close at 108.80 marks the lowest recorded closing price since July 29th. Trading $1.55 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Tuesday's low at 109.16, the market confirmed its breakout through the previous session low after trading up to $0.62 below it intraday.
Daily Candlestick Chart (ETSY as at Sep 16, 2020):
Wednesday's trading range has been $4.11 (3.7%), that's below the last trading month's daily average range of $6.20. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ETSY.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on August 17th, ETSY actually gained 2.54% on the following trading day.
Etsy found buyers again today around 108.54 for the third trading day in a row after having found demand at 109.16 in the prior session and at 109.39 two days ago.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling could speed up should prices move below the close-by swing low at 103.06 where further sell stops might get activated. As prices are trading close to September's low at 103.06, downside momentum could accelerate should the share mark new lows for the month.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Etsy. Out of 177 times, ETSY closed higher 54.80% 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 59.32% with an average market move of 2.50%.