Trade Desk Is an Enticing Streaming Play

Shares could move significantly higher in the months ahead.

During Monday night's Mad Money program Jim Cramer talked about some streaming plays. Investors looking for a more enticing streaming play should also consider The Trade Desk Inc. (TTD) , a platform that helps advertisers place ads on all of that streaming media.

Shares of TTD are up 89% over the past year and Cramer said the stock is not done heading higher. Let's check out the charts of TTD.  

In the daily bar chart of TTD, below, we can see that the stock has trended higher over the past year but not without a number of corrections or pullbacks. Currently TTD is testing the rising 50-day moving average line but remains well above the rising 200-day moving average line.

The trading volume looks like it has been heavier since November and the On-Balance-Volume (OBV) line made a strong move up from October to early January.

The Moving Average Convergence Divergence (MACD) oscillator turned bullish in early November but by late November we saw the indicator cross to a "take profits" mode. The indicator is pointed down towards the zero line and could generate a sell signal if prices weaken from here.  

 

In the weekly bar chart of TTD, below, we can see that prices have climbed considerably over the past three years. Prices are back above the rising 40-week moving average line.

 

The weekly OBV line has improved the past four to five months but it is at a lower high than levels last year even though prices are at a new high. This is a bearish divergence but it has not had a meaningful impact on prices.

 

The Moving Average Convergence Divergence (MACD) oscillator is also at a lower high but in bullish territory. The two moving averages that make up this indicator have been narrowing but that does not mean we will see a bearish crossover in the weeks ahead.  

 

 

In this weekly Point and Figure chart of TTD, below, we can see a potential upside price target in the $427 area. 

 

Bottom-line strategy: With a Point and Figure price target of $427 or so the upside on TTD looks enticing. Traders could go long here risking below $255.

 

Employees of TheStreet are prohibited from trading individual securities.