Etsy Aims For $300 Before Bears Cut The Stock In Half
EWM Interactive | Jul 05, 2021 07:39AM ET
The impulse pattern .
The
The daily chart above put Etsy's entire uptrend from $6.04 into Elliott Wave context. The structure of that phenomenal surge resembles a textbook five-wave impulse, labeled I-II-III-IV-V. The five sub-waves of waves I and III are clearly visible, as well.
The corrective decline culminating in the 2020 coronavirus crash is marked as wave II. Note that waves II and IV ended shortly after touching the 61.8% and 38.2% Fibonacci levels , respectively. If the count so far is correct, Etsy is now rising in wave V.
Fifth waves typically exceed the top of the respective third wave, meaning targets above $252 are plausible. We wouldn’t be surprised to see the stock actually approaching the $300 mark. Once there, however, the same principle that caused the wave II decline would be in operation once again. Only this time at an even bigger scale.
Correction usually erases the entire fifth wave. Assuming a bearish reversal around $300, that would be another ~50% plunge to the support of wave IV near $150. Something most investors would rather avoid, if possible.
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