Etsy shares are popping this month.
The e-commerce marketplace has rallied 7% in June, besting even the broader retail segment's 5% surge since June 3. Etsy has also outperformed its much larger online retail competitor Amazon – Etsy has added 109% over the past 12 months, while Amazon has increased 11%.
Todd Gordon, founder of TradingAnalysis.com, says its rally should continue.
"The stock has performed extremely well," Gordon said on CNBC's "Trading Nation" on Tuesday. "We IPOed up around $34, traded down to about $6 in 2016 and since then it's just been a rocket ship up to $67.50."
Since its public debut in April 2015, Etsy stock has roughly doubled to close in on $70. It hit an all-time high in March, though has since fallen back 9%.
One technical indicator suggests Etsy could be in for a short-term summer spike, says Gordon.
The moving average convergence-divergence indicator, a measure of momentum, "is in a pretty good buy position here," he said. Its recent turn upward indicates "that we do have a short-term break higher or push higher in momentum indicating that that consolidation that we [see on a weekly basis] could be about toast and uptrend resumption is coming."
Etsy has traded in a consolidated range from around $57 up to its March record at $73.35.
"I do like this stock. I want to buy this, I want to put an option trade together here as a sort of preemptive break of resistance," said Gordon.
The options market implies a move up to $75 by mid-July. To take advantage of that expected increase, Gordon is buying the out-of-the-money 70 call and selling the 75 call. This is a bet that Etsy can rally as high as $75 by July 19 expiration. A move to that level implies a 12% gain.