The Trade Desk Inc. (TTD) has made an impressive rally since early April but we are seeing increasing signs that a sideways to lower correction could unfold in the days and weeks ahead.
Let's check out a few charts and indicators.
In the daily bar chart of TTD, below, we can see that prices have tripled in less than four months. There is a low in the middle of March and then a retest in early April and then "off to the races" as they say. Prices are above the rising 50-day moving average line and when compared to February it is extended above the rising 200-day moving average line.
The On-Balance-Volume (OBV) line is pointed up and has been telling us that buyers of TTD have been more aggressive, but is not the whole story. In the lower panel is the 12-day price momentum study, which shows lower highs from May to June to July. The pace of the rally has been slowing even though prices have been going up -- this is a bearish divergence and can foreshadow a change in direction.