SIACharts Logo

Commentary >

Etsy Inc. - (ETSY) - March 9, 2023

Online retailer Etsy (ETSY) had been one of the relative strength success stories of 2022, climbing from the bottom of the red zone in the SIA S&P 500 Index Report, to the top of the green zone over the second half of the year. In recent weeks, and particularly in the days since retailers generally posted mixed earnings and weak guidance, retail stocks have been weakening and Etsy has been dropping back down the rankings.

Currently, ETSY sits in 245th place, 8 spots above the red zone near the bottom of the Yellow Neutral Zone. It fell 56 positions yesterday and is down 231 places in the last month.

Back in February, a recovery trend in Etsy (ETSY) shares faltered after continuing to encounter resistance near the $150.00 round number barrier. Since then, a correction has been underway with the shares falling back under their 50-day moving average and snapping a short-term uptrend line.

On the positive side, the shares bounced up off of their 200-day moving average near $109.00 on volume yesterday and longer term uptrend support near the $100.00 round number has held so far. A break below $100.00 would confirm the start of a potentially deeper downtrend with next support at the October low near $87.50. A rebound could encounter initial resistance between the $125.00 round number and the 50-day moving average near $129.00.

Etsy (ETSY) started the year off strong, rallying up off a higher low and breaking out of a downtrend. The shares started to falter in February and have rolled down in March, completing a bearish Double Bottom breakdown and a retreat that has extended into a bearish Low Pole.

Currently, the shares are retesting their January low near $111.50. A close below that level would complete a bearish spread double bottom pattern and confirm the start of a new downleg with next potential support at a 45-degree uptrend line near $105.10, then $101.00 based on a horizontal count, the $100.00 round number, and previous column lows near $91.50. Should $111.50 hold and the shares rebound, however, initial resistance may appear near $123.15 based on a 3-box reversal.

With a bearish SMAX score of 3, ETSY is exhibiting weakness against the asset classes.

Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.

Related Posts

Keep up to date on the latest financial market news.

Receive a daily newsletter with stock highlights, ETF rankings, weekly market focus and others.