Let's pay a visit to the charts of The Trade Desk Inc. (TTD) , a company that specializes in real-time programmatic marketing automation technologies.
In this daily bar chart of TTD, below, I can see that prices have been weak the past 12 months. Buying interest has appeared around $40 a number of times since May. Prices trade below the declining 50-day moving average line and below the declining 200-day moving average line. The daily On-Balance-Volume (OBV) line has trended lower the entire year, telling me that sellers of TTD have been more aggressive than buyers for an extended period of time. The Moving Average Convergence Divergence (MACD) oscillator is bearish and just failed at the underside of the zero line.
In this weekly Japanese candlestick chart of TTD, below, I can see a large top pattern playing out over the past 2-1/2 years. Prices are trading below the declining 40-week moving average line. A neckline can be drawn across the $40 level. Trading volume decreased through the top pattern and that is not unusual. The weekly OBV line has moved sideways the entire time the top was playing out and I am not sure how to interpret that action. The MACD oscillator is bearish.
In this daily Point and Figure chart of TTD, below, I can see a downside price target in the $34 area.
In this weekly Point and Figure chart of TTD, below, I used a five-box reversal filter and here the software projects the $31 area as a potential downside price target.
Bottom line strategy: TTD shares could bounce to the upside at any point in time, but the bigger picture is a large top pattern and the risk of further declines in the months ahead.
