Shares of e-commerce site Etsy (ETSY) were higher in early market trading on the heels of a ratings increase to overweight ("buy") by Piper Sandler Tuesday. I was cautious on the stock in my February 22 review.
Let's check and see how the charts look now.
In this daily bar chart of ETSY, below, I can see that prices continued to weaken into early March. Prices have firmed in the back half of March and are back above the 200-day moving average line.
The On-Balance-Volume (OBV) line declined from early February to the middle of March telling me that sellers of ETSY were more aggressive than buyers for a few weeks. It looks like aggressive buyers are returning.
The Moving Average Convergence Divergence (MACD) oscillator has crossed to the upside from below the zero line. This is a cover shorts buy signal.
In this weekly Japanese candlestick chart of ETSY, below, I see a mixed picture. Prices dipped below the 40-week moving average line but have firmed back above it. The trading volume declined in recent weeks suggesting that selling pressure has dried up.
The OBV line declined from early February to the middle of March. A shift back towards more aggressive buying is encouraging. The MACD oscillator is pointed down and close to crossing below the zero line for an outright sell signal.
In this daily Point and Figure chart of ETSY, below, I can see an upside price target in the $145 area.
In this weekly Point and Figure chart of ETSY, below, I can see a downside price target in the $51 area.
Bottom line strategy: Aggressive traders could trade ETSY from the long side now risking to $98. The $130 area is my price target for now.
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