Online retailer Etsy (ETSY) had been one of the relative strength success stories of 2022, climbing from the bottom of the red zone in the SIA S&P 500 Index Report, to the top of the green zone over the second half of the year. In recent weeks, and particularly in the days since retailers generally posted mixed earnings and weak guidance, retail stocks have been weakening and Etsy has been dropping back down the rankings.
Currently, ETSY sits in 245th place, 8 spots above the red zone near the bottom of the Yellow Neutral Zone. It fell 56 positions yesterday and is down 231 places in the last month.
Back in February, a recovery trend in Etsy (ETSY) shares faltered after continuing to encounter resistance near the $150.00 round number barrier. Since then, a correction has been underway with the shares falling back under their 50-day moving average and snapping a short-term uptrend line.
On the positive side, the shares bounced up off of their 200-day moving average near $109.00 on volume yesterday and longer term uptrend support near the $100.00 round number has held so far. A break below $100.00 would confirm the start of a potentially deeper downtrend with next support at the October low near $87.50. A rebound could encounter initial resistance between the $125.00 round number and the 50-day moving average near $129.00.
Etsy (ETSY) started the year off strong, rallying up off a higher low and breaking out of a downtrend. The shares started to falter in February and have rolled down in March, completing a bearish Double Bottom breakdown and a retreat that has extended into a bearish Low Pole.
Currently, the shares are retesting their January low near $111.50. A close below that level would complete a bearish spread double bottom pattern and confirm the start of a new downleg with next potential support at a 45-degree uptrend line near $105.10, then $101.00 based on a horizontal count, the $100.00 round number, and previous column lows near $91.50. Should $111.50 hold and the shares rebound, however, initial resistance may appear near $123.15 based on a 3-box reversal.
With a bearish SMAX score of 3, ETSY is exhibiting weakness against the asset classes.
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