Etsy, Inc. (ETSY) gapped to the upside today. I reviewed the charts of ETSY back in early October where I wrote, "I like the turnaround on the charts and indicators for ETSY. Because $16 was the top of the pattern, I would like to try to buy a pullback or retest of that level. Aggressive traders can look to buy a dip to around $16, risking below $15; $32 is our longer-term price objective."
Looking at the charts today I can see that traders got to buy that pullback to around $16 and our suggested sell stop was never in play. With the gap to the upside today a fresh look at the charts is in order.
In this daily bar chart of ETSY, below, we can see that ETSY has become more active since October. The price swings have been bigger and the volume of trading heavier. Prices are above the rising 50-day simple moving average line and above the rising 200-day line.
The daily On-Balance-Volume (OBV) line has pushed up to a new high by aggressive buying. The new high in the OBV line helps to confirm the new price high. The trend-following Moving Average Convergence Divergence (MACD) oscillator is above the zero line in a bullish mode.
In this weekly bar chart of ETSY, below, we can see that prices are above the rising 40-week moving average line. The weekly OBV line has been steady in recent months but should turn higher in the weeks ahead. The weekly MACD oscillator is above the zero line and bullish.
In this Point and Figure chart of ETSY, below, we can see a fresh breakout at $22.56. This chart does not chart gaps. A price target of $31 is indicated.
Bottom line: Traders long ETSY from October should continue to hold for higher prices. Our target is the low $30's. Sell stops should be raised to $20 to lock in some money if prices reversed.