ETSY - Current Long position, and Potential Gap TradeThe stock ETSY has hit the 50% Fibonacci resistance line and bounced off of it. The Fib line represents a trend that had been in place from February 2017, around $9 price, until the high of $73 in February 2019. This resistance line is very strong, and can represent reversals along with other indicators.
Currently we see on the 1D, 4H, and 1H charts, that the 5d MA has crossed over the 8d MA, potentially signalling bullish movement. I have opened a trade at $43.80, with a short to previous resistance of upward movement (about $42.80). I have a 50% sell at $46, and the other 50% will be aiming for the Gap Trade that could be in play. The downward movement on October 31 represented a $8 drop in price, which often eventually finds it's way back to the starting price, before resuming previous trend. IF the $46 trade hits it's mark, I will set the Sell at $52, and will be moving up my stop loss to $43.80.
Depending on how the MA plays out, I will keep this trade open to continue trade #2.
