Many tech and e-commerce stocks have made new 52-week lows recently as the market slides. Etsy has been an exception, but will that remain the case?
The first pattern on today’s chart is the relatively tight descending channel that’s formed since mid-August. ETSY now finds itself between the 50-day simple moving average (SMA) and 100-day SMA. Its failure to hold the 50-day SMA suggests its intermediate-term uptrend is fading. A break below the 100-day SMA could indicate sellers taking control over the longer-term.
Next, Bollinger band width recently contracted to its narrowest reading of the year, but has widened in the last two weeks. That could signal prices are starting to move again. (Notice how band width also anticipated the big slide in January.)
Finally, MACD has been working lower for more than a month.
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This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing in cryptocurrencies involves significant risks. Please click here for TradeStation Crypto’s risk disclosures on investing and trading in cryptocurrencies.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com/important-information.
The first pattern on today’s chart is the relatively tight descending channel that’s formed since mid-August. ETSY now finds itself between the 50-day simple moving average (SMA) and 100-day SMA. Its failure to hold the 50-day SMA suggests its intermediate-term uptrend is fading. A break below the 100-day SMA could indicate sellers taking control over the longer-term.
Next, Bollinger band width recently contracted to its narrowest reading of the year, but has widened in the last two weeks. That could signal prices are starting to move again. (Notice how band width also anticipated the big slide in January.)
Finally, MACD has been working lower for more than a month.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. You Can Trade, Inc. is also a wholly owned subsidiary of TradeStation Group, Inc., operating under its own brand and trademarks. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing in cryptocurrencies involves significant risks. Please click here for TradeStation Crypto’s risk disclosures on investing and trading in cryptocurrencies.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com/important-information.