- Etsy Inc. stock has given a return of over -43% in the previous year
- Etsy Inc. does not pay any dividends to their shareholders.
The stock of ETSY has been moving with an uptrend momentum and has been forming a pattern of higher highs. The stock has given a return of over -43% in the previous year. Additionally, the YTD return of the stock is -49%. This denotes that the company is performing poorly and giving a negative return.
As per the technical analysis, among the 26 indicators, 15 are indicating a sell signal, while only 1 is suggesting a buy signal in the daily timeframe. This suggests the potential dominance of sellers in the ETSY stock price.
It’s worth noting that Etsy Inc. stock does not provide dividends to its shareholders, which may not appeal to certain investors who prefer dividend-paying stocks.
Etsy Inc.’s stock reached its peak at $307.75 in November 2021 but subsequently experienced a significant decline of nearly 80% by the end of May 2022. However, it found support at the $74 level, leading to an impressive recovery, with the stock surging by over 120%. However, this uptrend didn’t last for a long time, and the downtrend started once again.
Recently, the stock has given a breakout from the previous support level of $74 and is currently trading at $61.4 level with a decline of 4.40% in today’s market session. The overall structure of the stock appears weak, forming a negative pattern, and there is a likelihood of further price declines in the upcoming days.
Etsy Inc. (ETSY) Technical Analysis
ETSY by writer50_tcr on TradingView.com
Technical Indicators’ Overview:
ETSY stock is currently trading below both the 50-day and 100-day EMA levels, which is interpreted as a negative sign. This suggests an increased likelihood of the stock price experiencing a downward trend in the days to come.
In terms of the MACD indicator, the analysis of ETSY stock reveals that the MACD line is positioned below the signal line. This specific configuration, with the MACD line below the signal line, is typically regarded as a weak indicator, implying that the stock price is likely to fall in the upcoming days.
Furthermore, the RSI line for ETSY is on a downward trajectory after previously entering the overbought region. Currently at a level of 30, it is generally seen as a weak signal for the stock price.
Conclusion
In summary, the performance of Etsy Inc. (ETSY) stock reveals weak momentum. The overall trend of the stock is negative and the stock has given negative returns in the previous years. Additionally, the earnings are declining and the indicators are giving a weak signal. Hence, the price is likely to decline in the future.
Technical Levels
· Support Level: $60
· Resistance Level: $74
Disclaimer
The views and opinions of the author, or anyone named in this article, are for informational purposes only. They do not offer financial, investment, or other advice. Investing or trading crypto assets involves the risk of financial loss.