Etsy (ETSY) went public last year and promptly declined. Its launch could have been ill-timed or poorly managed, but that is behind us -- what's ahead?
TheStreet.com's quantitative service just initiated coverage, so a fresh look at ETSY is warranted.
In this daily chart of ETSY, above, we can see a change in trend. From May of last year until January/February this year, shares of ETSY were under pressure. The 50-day simple moving average had a downward slope, which defined the trend. The On-Balance-Volume (OBV) line moved lower, with prices telling us that sellers were more aggressive.
In the lower panel, small bullish divergences last year failed to generate anything more than a bounce in the downtrend. Things changed in February, as prices rallied and closed above the flattening 50-day average. The OBV line turned up with prices and showed that buyers had now become more aggressive and volume was heavier on days when ETSY closed higher.
Prices have moved sideways for three months and the 200-day average line is not all that far above the market. A couple of closes above $10 will help to strengthen the chart and give us a small breakout from the action since November.