Stock Traders Daily says ETSY might define neutral resistance

December 13, 2023, 12:05 pm ET, BY Thomas H. Kee Jr- Editor, Stock Traders Daily| Editor: Thomas H. Kee Jr. (Follow on LinkedIn)

Today's pullback aside, Etsy (NASDAQ: ETSY) is well above its former longer term down channel resistance level.  It broke out a while ago.  Typically, a break of a down channel is followed by a reversion to neutral channels, and at first no new resistance levels exist as new channels develop with resistance typically at moderately higher levels. 

The pullback today may have identified the resistance line of what could be a new longer term neutral patttern for ETSY.  If that is true, converted support is the likely target.

Longer Term Trading Plans for ETSY

• Buy ETSY slightly over 72.67 target n/a stop loss @ 72.46. Details

The technical summary data tells us to buy ETSY near 72.67, but there is no current upside target from the summary table. In this case we should wait until either an update to the summary table has been made (which usually happens at the beginning of every trading day), or until the position has been stopped. The data does tell us to set a stop loss 72.46 to protect against excessive loss in case the stock begins to move against the trade. 72.67 is the first level of support below 81.925, and by rule, any test of support is a buy signal. In this case, if support 72.67 is being tested, a buy signal would exist.

• NONE . Details

NONE .
There are no current resistance levels from the summary table, and therefore there are no Short resistance Plans which tell us to short upon tests of resistance. Resistance levels have broken higher and unless the stock reverses lower and below support levels again short positions look risky.

Swing Trading Plans for ETSY

• Buy ETSY slightly over 82.6, target 87.55, Stop Loss @ 82.36 Details

If 82.6 begins to break higher, the technical summary data tells us to buy ETSY just slightly over 82.6, with an upside target of 87.55. The data also tells us to set a stop loss @ 82.36 in case the stock turns against the trade. 82.6 is the first level of resistance above 81.925, and by rule, any break above resistance is a buy signal. In this case, 82.6, initial resistance, would be breaking higher, so a buy signal would exist. Because this plan is based on a break of resistance, it is referred to as a Long Resistance Plan.

• Short ETSY slightly near 82.6, target 72.67, Stop Loss @ 82.84. Details

The technical summary data is suggesting a short of ETSY if it tests 82.6 with a downside target of 72.67. We should have a stop loss in place at 82.84 though in case the stock begins to move against the trade. By rule, any test of resistance is a short signal. In this case, if resistance, 82.6, is being tested a short signal would exist. Because this plan is a short plan based on a test of resistance it is referred to as a Short Resistance Plan.

Day Trading Plans for ETSY

• Buy ETSY slightly over 82.6, target 83.84, Stop Loss @ 82.41 Details

If 82.6 begins to break higher, the technical summary data tells us to buy ETSY just slightly over 82.6, with an upside target of 83.84. The data also tells us to set a stop loss @ 82.41 in case the stock turns against the trade. 82.6 is the first level of resistance above 81.925, and by rule, any break above resistance is a buy signal. In this case, 82.6, initial resistance, would be breaking higher, so a buy signal would exist. Because this plan is based on a break of resistance, it is referred to as a Long Resistance Plan.

• Short ETSY slightly near 82.6, target 72.67, Stop Loss @ 82.79. Details

The technical summary data is suggesting a short of ETSY if it tests 82.6 with a downside target of 72.67. We should have a stop loss in place at 82.79 though in case the stock begins to move against the trade. By rule, any test of resistance is a short signal. In this case, if resistance, 82.6, is being tested a short signal would exist. Because this plan is a short plan based on a test of resistance it is referred to as a Short Resistance Plan.

ETSY Ratings for December 13:

Term →	Near	Mid	Long
Rating	Strong	Strong	Weak
P1	0	0	47.79
P2	83.84	82.6	59.35
P3	87.48	87.55	72.67

Support and Resistance Plot Chart for ETSY

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