My Trade Plan:
- Stop: Under $179 at the lower end of the range and near the lows we saw back in July/August last year
- Target 1: $200
- Target 2: $215
- Strike: 190 calls
- Expiration: Jan 21 2022
- Price: near $5.00
ETSY, Inc. (ETSY) - Bullseye Pick of the Week
ETSY, Inc. (ETSY)
Original Alert went out on January 10, 2022
I like to look at indicators like Keltner channels and the “average true range” (ATR) of a stock to get a sense of where the stock is most likely to trade in the future.
ETSY (along with tons of other stocks in the market right now) are trading at -3 ATR which is very uncommon.
Could these stocks go lower from here? Certainly. Is it likely? Not based on historical volatility data.
That is where I place my bets.
While the chart on ETSY might look ugly right now, I think that is the exact time you want to look for an opportunity for a relief rally that could move the stock 5-10% higher.
I am not calling for the market to run into full bull mode anytime soon, but I definitely think we are very close to finding that relief rally where shorts will be forced to cover their shares and bullish traders resume buying the dip.
I think this will be short-lived however and I don’t want to be in trades very long right now