ETSY is trading at $64.72 with an intraday trading volume of 2.738, its average trading volume over the last 10 days is 4.063. The company has a market cap of 7.961 Billion, and floating share value is 122.035 Million with a basic EPS of -5.65.
The company reported its Q2 2023 earnings recently, which showed a revenue of 628.88 Million and a net income of 61.91 Million. The company had a profit margin of 9.85%, which shows its efficiency and profitability. However, the profit margin was lower than the Q1 2023 earnings indicating a decline in performance.
The stock had a poor performance this year, as it gave a return of 46.74% to its investors since the beginning of the year. However, recently, the stock has shown signs of weakness, as it failed to break above the resistance level of 50-day EMA. The stock is also trading below the key moving averages, which are bearish signals.
As per TradingView, out of 26 indicators, 13 are on the sell side, 9 are on the neutral side, and 4 of them indicate a buy signal. However, the overall weightage of indicators is on the sell side. Furthermore, 13 analysts gave a maximum estimation of a price to be 170.00 and a minimum estimation of a price to be 46.00. Moreover, out of 32 analysts, 15 are giving a strong buy signal, 2 are giving a buy rating and 12 are hinting at a hold, 3 rate a strong sell.
ETSY Stock Technical Analysis
According to the technical chart, ETSY took a sharp rejection from the upper trendline of $102.88 and broke the 50-day EMA line. The price was currently trading below the 50 SMA line.
MACD breached the middle line and headed downwards. MACD line (-3.79) is beneath the signal line (-4.08) demonstrating bearishness in the stock. The RSI line is also heading towards an oversold zone, breaching the median line. RSI line (34.71) is beneath the 14 SMA (30.37) line demonstrating bearishness.
On the 4-hour charts, Etsy stock is on the verge of a most awaited breakdown, which registers when the price trades below $60. However, buyers are accumulating the stock by defending it from the support of $64.
RSI shows sellers’ presence. The RSI curve is floating near 41, which indicates that the stock is oversold. This could be a sign that sellers are starting to lose control of the stock. However, the RSI is still in the neutral zone, so it is too early to say for sure that a breakdown is imminent.
The MACD indicator is bearish and maintains red bars on the histogram. This suggests that the momentum in the stock is bearish. However, the MACD is not yet in the oversold zone, so it is possible that the stock could stage a rally before breaking down.
Conclusion
Etsy Inc, stock price is heading downward breaking 50 and 200-day EMA. Most trustworthy technical indicators like MACD and RSI are indicating a downtrend in ETSY price. Etsy Investors avoid the FOMO (fear of missing out). Scarcity is created in the stock market for accumulating more investors and creditors. It is better to keep it at arm’s length as this may result in one of the emerging reasons for market volatility.
Technical Levels
- Support Levels: $62.63 and $51.70.
- Resistance Levels: $70.00 and $82.22.
Disclaimer
This article is for informational purposes only and does not provide any financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your own research before making any financial decisions.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/09/26/etsy-price-prediction-will-etsy-stock-break-below-60-level/