On Mad Money Thursday night, Jim Cramer spoke with Josh Silverman, CEO of Etsy Inc. (ETSY) , the online marketplace with shares up 150% from their March lows.
Silverman said in a hard-hit economy, Etsy is providing people with a way to earn income and a place for buyers to find goods they can't get elsewhere. He said when the CDC began recommending fabric masks, Etsy sellers rose to the challenge.
Sales of other goods have increased as well. Silverman noted that non-mask sales grew by 79% this quarter.
Silverman said long-term trends are being accelerated by the pandemic. Some people still don't shop online, but after being forced to buy online, they're trying it and liking it.
Let's check and see if investors are liking ETSY.
In the daily bar chart of ETSY, below, we can see the decline in prices just in March and the rapid recovery in April and the new highs for 2019-20 in May. Amazing. Prices are above the rising 50-day moving average line and above the bottoming 200-day line. We can also see a recent golden cross buy signal as the 50-day line crossed above the slower-to-react 200-day line.
The daily On-Balance-Volume (OBV) line is knocking on a new high and tells us that buyers of ETSY have been more aggressive in recent weeks. The Moving Average Convergence Divergence (MACD) oscillator crossed the zero line by the middle of April for an outright go long signal.
In the weekly bar chart of ETSY, below, we can see that the stock was correcting lower from early 2019 until the March 2020 nadir. Prices have since rallied above the 2019 highs into new high ground. ETSY is above the bottoming 40-week moving average line.
The weekly OBV line has been in an uptrend the past three years and stands at a new bullish high. The Moving Average Convergence Divergence (MACD) oscillator has crossed above the zero line for a new outright go long signal on this longer time frame.
In this daily Point and Figure chart of ETSY, below, we can see the recent new highs and a possible $111 price target.
Bottom-line strategy: The price of ETSY looks extended on the upside so new longs should wait for a dip toward $70 to do their buying. Risk to $60 for now. The price targets are $100 and $111.