The Trade Desk Inc. (TTD) is selling off this Wednesday. The ad-tech company is part of Jim Cramer's new Covid-19 index so let's check out the charts.
In the daily bar chart of TTD, below, we can see that prices have given back most of the gains for May. It looks like a reversal pattern -- a close below the low of the high day. It also looks like the On-Balance-Volume (OBV) line has made a peak and the Moving Average Convergence Divergence (MACD) oscillator is close to a downside crossover signaling to take profits.
In the weekly bar chart of TTD, below, we can see a very large broadening pattern. Broadening patterns can be continuation patterns and they can be reversal patterns. Too soon to tell yet. Prices are above the rising 40-week moving average line.
The weekly OBV line is pointed up but it remains below its best levels and that is a bearish divergence that bears watching.
The MACD oscillator has crossed to a new buy signal but it seems a bit late now.
In the daily Point and Figure chart of TTD, below, we can see that the chart is telling us that prices could decline to the $257 area. Not a deep decline.
Bottom-line strategy: Right now it looks like TTD is pulling back to around the $257 area. This would mean that prices stay above the rising moving averages. If the pullback holds this area and the advance resumes then all is well. However, if prices do not find buying interest around $257 we could be in for a deeper pullback. Stay nimble.
