We last reviewed ETSY on May 8 and wrote that, "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." Now that prices have passed our $100 price target a fresh look at the charts is a good idea.
In the daily bar chart of ETSY, below, we can see that prices have been trading in the $100 area for a few days. Prices are above the rising 50-day moving average line and above the rising 200-day line. I would consider prices extended on the upside when compared to the slower-to-react 200-day moving average line.
The daily On-Balance-Volume (OBV) line has made a new high for the move up but the actual level of trading volume has not been particularly strong. The 12-day price momentum study shows a lower high from April to June, telling us that the pace of the advance has slowed despite prices making new highs. This is a bearish divergence and can be a "heads up" that prices can be vulnerable to a decline.