Don't Ignore This Chart!

Etsy (ETSY) Finds New Buyers

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Every day, we continue to see big name stocks join the new 52-week highs. This week, a great chart of ETSY kept finding new buyers at higher prices. The stock has been a top performer since May of 2017. Notice the SCTR ranking soaring into the top of the range; it has stayed up in the top quartile for 7 quarters. Today, the stock soared above an ascending consolidation and closed near the high of the day.

The investor that continues to stare at a very high price/earnings ratio could talk themselves out of this stock. But institutional investors continue to invest in the story. This is what the price action, the volume, the momentum and the relative strength continue to tell us. More importantly, the website continues to attract attention with new offerings. This year, I ordered products from ETSY for the first time. It is the finding of new buyers that continues to propel the stock higher. New buyers are reaching out for the products on the site and investors are hitting the buy button for shares of the company.

Good trading,
Greg Schnell, CMT, MFTA.

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Greg Schnell
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com specializing in intermarket and commodities analysis. Based in Calgary, he is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the Market Technicians Association (MTA) and the International Federation of Technical Analysts (IFTA).

Greg is also the co-author of Stock Charts for Dummies (Wiley, 2018). Greg joined StockCharts.com in 2012 and has be instrumental in helping launch a variety of new blogs and other commentary platforms. Presently, Greg contributes market analysis commentary to The Canadian Technician, Commodities Countdown and Don't Ignore This Chart blogs. Learn More
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