ETSY dominated by bears dragging the market lower throughout the day
Etsy Inc. (ETSY) Technical Analysis Report for Oct 16, 2020 | by Techniquant Editorial Team
ETSY finished the week 0.63% higher at 147.59 after losing $3.08 (-2.04%) today on low volume, significantly underperforming the S&P 500 (0.01%). The bears were in full control today, moving the market lower throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (ETSY as at Oct 16, 2020):
Friday's trading range has been $5.30 (3.49%), that's below the last trading month's daily average range of $6.34. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for ETSY.
Three candlestick patterns are matching today's price action, the Bearish Short Candle, the Black Candle and the Dark Cloud Cover which are known as bearish patterns. The last time a Dark Cloud Cover showed up on October 8th, ETSY actually gained 5.11% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could accelerate should prices move below the nearby swing low at 143.45 where further sell stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Short Candle" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Etsy. Out of 27 times, ETSY closed higher 51.85% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 55.56% with an average market move of 2.81%.