Swing Trade Idea – (ETSY) – September 16, 2020
Our bearish trade for Tuesday, September 15th is ETSY (ETSY Inc). ETSY is part of the Consumer Discretionary Sector (XLY). XLY has experienced a 3.65% gain in the last month and its 6M trend turned bullish on May 18th.
ETSY broke below its $115 support level and has rejected this level multiple times indicating further bearish movement and its 1M trend turned bearish on September 3rd. With a technical score of 10 (out of 10), ETSY is a very strong stock that will likely reverse and continue lower.
As a stop loss, if ETSY were to trade above $119 for multiple days, this would invalidate our analysis and we would focus on cutting losses on the trade. We would also consider cutting losses on this options trade if the value of the vertical spread moves above $9.00.
