Why I fear the worst about this online marketplace stock
After peaking in 2021, this stock has struggled to make any recovery attempt stick. Independent analyst Alistair Strang explains why the charts do not encourage optimism.
4th September 2024 07:41
by Alistair Strang from Trends and Targets
Share on
The continued rise of e-commerce platform Etsy Inc (NASDAQ:ETSY) in the UK, along with a few emails asking our opinion on their share price, certainly gave us pause for thought.
- Invest with ii: Open a Stocks & Shares ISA | ISA Investment Ideas | Transfer a Stocks & Shares ISA
Etsy's share price is looking slightly attractive presently, the price doing a careful limbo dance above the Red line on the chart. We fear, should it move below $51, there’s a very real risk of further reversals down to an initial $44 with our secondary, if broken, at a hopeful bottom of $30. To be blunt, we don’t expect the Red line to hold.
If the share price intends any attempt to impress the market, above $57.5 should prove interesting, allowing a rise to an initial $59.5 with our secondary, if such a level is bettered, working out at $67.
For now, we fear the worst.
Source: Trends and Targets. Past performance is not a guide to future performance.
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea.
These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.