Etsy Strong Sell Alert: Key Factors

By Gareth Soloway of In the Money Stocks

President & Chief Market Strategist at IntheMoneyStocks • Jan 26, 2021 at 1:38 PM EST

The first major support on the stock chart is $154.00. That gives investors looking to short, as much as 25% downside reward.

Etsy Inc (ETSY) opened sharply higher today after Tesla’s Elon Musk mentioned it on Twitter. However, no sooner did it open, the stock fell sharply and is now negative on the day. This is an Etsy strong sell signal. In this market environment, it is extremely bearish to see. Usually, a big name like Elon Musk mentioning anything would create a multi-day move higher, or at least one full day of major upside. The fact that it quickly fell and went negative, tells investors that institutions used the pump to dump millions of shares into. In addition, looking at the chart on Etsy, it is up from $30 in March 2020 to the high today of $226.73. That insane move begs for smart money to dump into it. In terms of downside, the first major support on the stock chart is $154.00. That gives investors looking to short, as much as 25% downside reward.

(Click on image to enlarge)

Disclaimer:

All comments made by InTheMoneyStocks, LLC and its subsidiaries, instructors, and representatives are for educational and informational purposes only and should not be construed as investment advice regarding the purchase or sale of securities, or any other financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities mentioned herein. InTheMoneyStocks, LLC and its representatives assume no responsibility for your trading and investment results. All information on the website was obtained from sources believed to be reliable., but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. InTheMoneyStocks, LLC, its employees, representatives and affiliated individuals may have a position or effect transactions in the securities herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves a very high degree of risk. Futures and Options trading are not suitable for all investors. Past results are not indicative of future results. InTheMoneyStocks, LLC, its subsidiaries and all affiliated individuals assume no responsibility for your trading and investment results.