History Says Buy the Dip on This Etailer

ETSY has pulled back to a historically bullish trendline

Managing Editor
Jun 27, 2019 at 12:26 PM
facebook X logo linkedin


Online retailer Etsy Inc (NASDAQ:ETSY) has struggled recapture its technical tenacity from earlier in the year. Fortunately, there's a reliable signal sounding that indicates a another breakout could be imminent, if history is any guide.

More specifically, Etsy stock is now within 2% of its 160-day moving average. Since its inception, there have been eight other times when the stock pulled back to this trendline, after which it was higher one month later all eight times, per data from Schaeffer's Senior Quantitative Analyst Rocky White. In fact, the e-tail stock racked up an average one-month gain of almost 16% after these signals.

ETSY Stock Chart

At last check, ETSY was up 2.7% to trade at $62.06, so a move of similar proportion would put the stock around $72. This would topple the $70 level that has emerged as a stiff ceiling since ETSY's March 4, record high of $73.34. Year-to-date, the equity is up 31%. 

A rally could also send a contingent of short sellers to the exits, fueling more upside. Short interest is at its highest point since April 15, and accounts for a healthy 8.3% of ETSY's total available float. At the stock's average pace of trading, it would take shorts more than four days to buy back their bearish bets.

Now might be an opportune time to speculate on Etsy's next move with options. The equity's Schaeffer's Volatility Index (SVI) of 43% that ranks in the 8th percentile of its annual range, suggesting that near-term option traders are pricing in relatively low volatility expectations. 


 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI