Etsy Potential Major Support Bounce Trade IdeaHi guys! This is a technical analysis on Etsy (ETSY) on the 3 Day timeframe, supporting a potential Support Bounce Play.
We've come a long way from our recent Rejection off the "Major Resistance" Red Trendline.
Moving below the 21 EMA (Purple line)
Breaking Below our previous Support Trend line Turned Resistance Line (Black Horizontal line)
To now come in contact with Major Support.
Notice how in Previous interactions with this "Major Support", we have bounced for price gains.
The key is not the percentage gains but simply the fact that we bounce from here.
Our previous candle printing a Bullish Engulfing candle and current candle also in the process of confirming. This supports the idea of further price increases as it indicates buying pressure.
If history is any indication, also remembering that its not an exact reference. We can say that it is "probable" that we BOUNCE from here.
Since its our 3rd touch point in all of the history of ETSY's price action. This also adds to my bounce projection.
Price action tends to react around Support/ Resistance trendlines.
If this holds true, our target for this bounce idea, would be the "Re-test" of the Support Turned Resistance line or "Target 1 Sell Zone".
The 21 EMA also converges currently at the level. So this can be another line we interact with.
STOCH RSI is a great indicator to combine with this idea as it depicts when bullish or bearish momentum comes into trends.
We are currently BELOW the 20 level, but have CROSSED BULLISH.
Everytime we've done this in Previous History, and have CROSSED ABOVE the 20 level it has lead to a Bounce off the Support.
With all that has been said, this is a Critical Area to watch for Etsy.
__________________________________________________________________________________
Thank you for taking the time to read my analysis. Hope it helped keep you informed. Please do support my ideas by boosting, following me and commenting. Thanks again.
Stay tuned for more updates on ETSY in the near future.
If you have any questions, do reach out. Thank you again.
DISCLAIMER: This is not financial advice, i am not a financial advisor. The thoughts expressed in the posts are my opinion and for educational purposes. Do not use my ideas for the basis of your trading strategy, make sure to work out your own strategy and when trading always spend majority of your time on risk management strateg
