Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
ETSY stock price took support near $58.20 and recovered approximately 17% from the low. The downfall in the stock has taken a halt and buyers are coming forward to push the price higher.
ETSY stock price climbed above the 50-day EMA which shows initial signs of the short-term bullish trend reversal. However, the confirmation of the bullish trend reversal will come when buyers can break the $80.00 hurdle.
In the last two months, ETSY’s share price consolidated into the range between $58.00 to $70.00. It formed a short-term base and absorbed the selling pressure.
In the mid of October, buyers tried to break out of the $70.00 hurdle and expand the range upward. Sadly, the attempt failed and prices again reversed down.
ETSY Inc. released the Q3 earnings on November 1, 2023. It reported an EPS of $0.64 and revenue of $636.302 Million.
The company beats the EPS estimate by 27.15% and the revenue estimate by 0.79%. Due to that investors reacted positively and stock prices began to recover.
ETSY stock price closed the previous session at $68.38 with an increase of 8.18%. The market capitalization also increases and stands at $8.19 Billion.
ETSY Stock Price Analysis: Will Bulls Break The $70 Hurdle?
ETSY stock price is in the recovery phase and the presence of buyers is visible. The buying volume also increased indicating that the bulls are getting active and recovery may continue.
The recent up move in the stock price looks reliable so buyers will try their best to hold the higher levels. However, the prices will pick up the momentum when buyers can break out of the $70.00 hurdle.
The analysis suggests that till ETSY shares sustained above the 50-day EMA the probability of the $70 breakout will remain high. However, if the situation reverses and prices slip below the 50-day EMA. Then bears may try to drag it down to the previous low.
Will ETSY Stock Price Give Follow-up Next Week?
ETSY stock price formed a bullish marubozu candle on the weekly chart. However, the bulls need to give the follow-up momentum to bring back the confidence of investors.
The MACD curve displayed a positive crossover and the histogram bar is green indicating prices may continue to trade with a bullish bias.
The RSI at 59 slopes upward denoting the strength of the bulls and more room for upside is open. The supertrend says that if it breaks the $69.00 then more participation of bulls may be visible.
Conclusion
ETSY stock price reversed upward and managed to climb above the 50-day EMA. The Q3 earnings are better than expected which positively impacted the stock and halted the downfall. The analysis suggests that ETSY stock price has gained momentum so it may break out of the $70.00 hurdle soon.
Technical levels
- Resistance levels: $70.18 and $75.67
- Support levels: $58.20 and $55.00
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/11/15/etsy-stock-price-surges-8-q3-earnings-reversed-the-trend/