Technical Analysis of ETSY

Disclaimer: I don’t own shares of ETSY.
The below analysis is not a trading or investment recommendation & is only for learning purpose.
1.Etsy has been in a downtrend with price trading under the 200 DMA.
2.Price has been in a lower high-lower low structure with the most recent lower high pivot around $148.
3. Price has formed a bullish engulfing bar today engulfing the last two red candles closing just under the long-term downtrend line & at support.
4.The bullish engulfing bar is accompanied by massive volume demonstrating massive commitment from the bulls.
5. With the massive volume, if price crosses the last lower high at $148 & stays above it, the immediate target would be to reclaim the 200DMA around $200.
6. RSI shows a positive/bullish divergence which will be confirmed once price breaks above the trendline.
7.Immediate resistance levels are around $131, followed by $148 & $200.
8. Support at $109 to be respected, barring which the stock could slip into a further downtrend.
All the best!


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