Etsy Has Deepest Pullback Since its Rally BeganE-commerce has grown dramatically in the era of coronavirus, as most traders know. A lot of the attention has obviously focused on the big names like Amazon.com, but smaller player Etsy has risen even more.
ETSY crushed forecasts the last time it reported on August 5, with revenue more than doubling from the previous year. The stock ran into the news and then drifted lower. It’s now approaching some interesting levels.
First, ETSY’s low today of $116.63 is slightly above its early-July peak. Second, it’s barely $1 above the 50-day simple moving average. That’s the closest it’s gotten to the 50-day SMA since early April. The shares are also oversold based on stochastics.
Given the short-term weakness, traders may wait a little longer before doing much with ETSY. There could also be opportunities nearer $110 if there’s one final push to the downside.
Still, ETSY’s been a very strong name in an important corner of the market. It may be time to start watching it around these levels.
