ETSY Stock: Staging A Constructive Advance

Higher Etsy Stock  After a slow start to 2017,  Etsy Inc <span data-recalc-dims=(NASDAQ:ETSY) stock is beginning to make real strides. " width="300" height="200" srcset="https://i2.wp.com/investorsbuz.com/wp-content/uploads/2017/07/ETSY-Stock-300x200-Small.jpg?resize=300%2C200&ssl=1 300w, https://i2.wp.com/investorsbuz.com/wp-content/uploads/2017/07/ETSY-Stock-300x200-Small.jpg?w=720&ssl=1 720w" sizes="(max-width: 300px) 100vw, 300px" />

FOREX INVESTORS BUZZ Higher Etsy Stock  After a slow start to 2017,  Etsy Inc (NASDAQ:ETSY) stock is beginning to make real strides. This is not my first foray into Etsy stock; last summer I outlined key developments that were supporting a bullish view.

This view was not met without criticism, but the move that followed quickly silenced the skeptics. ETSY shares had an  impressive advance that saw its stock price move from $9.94 to a high of $14.57 in as little as eight trading days.

) stock is beginning to make real strides. This is not my first foray into Etsy stock; last summer I outlined key developments that were supporting a bullish view.

This view was not met without criticism, but the move that followed quickly silenced the skeptics. ETSY shares had an impressive advance that saw its stock price move from $9.94 to a high of $14.57 in as little as eight trading days.

The following stock chart illustrates the bullish price action that occurred following news on May 16 that activist investors were taking action in order to extract value from the company.



Higher Etsy Stock

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ETSY stock chart

 

The price chart illustrates the fact that the news of these activist investors caused the stock price to gap. This gap is marked as a “breakaway gap” because gaps such as these rarely get filled, and almost always indicate that a new trend has begun.

Following the breakaway gap, a technical price pattern known as a “pennant” quickly formed. These patterns are created by using two converging trend lines that serve to represent respective levels of support and resistance. Once the price breaks above resistance or below support, it will dictate the direction that the investment is heading in next.

he following Etsy stock chart illustrates indications on a longer-term scale that are also suggesting that an advance is underway.

Etsy price chart

 

This Etsy stock chart is a perfect example of constructive price action that is being supported by a bullish momentum indicator.

Constructive price action consists of an alternating wave structure that contains impulse waves and consolidation waves.

An impulse wave, which is highlighted in green on the chart above, serves to define the stage in a bull market when an investment stages a swift and orderly advance.

A consolidation wave, which is highlighted in purple on the chart above, serves to define the stage in a bull market where the previous gains are digested, and overbought conditions are alleviated. This wave creates the necessary conditions for a new impulse wave to develop.

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Jadtecnic

Richard Dambrosi (JADTECNIC) Has Been Sharing FOREX INVESTORS ANALYSIS FORECAST since 2011. Editors and Founder of InvestorsBuz.com, has a passion for Forex Social Sharing analysis and Market Trends Such as Self Driving Cars, Electric Cars, Medical Marijuana, 3d printing and Cloud computing, Refers to Readers as BUZ INVESTORS.

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