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  1. Home
  2. / Investing
  3. / Stocks

Tradeweb Markets Looks Poised to Trade Even Lower in the Near Term

The charts of the operator of electronic marketplaces for various asset classes suggest its shares could pull back more than they already have.
By BRUCE KAMICH
Apr 12, 2023 | 09:30 AM EDT
Stocks quotes in this article: TW

Tradeweb Markets Inc. (TW) builds and operates electronic over-the-counter (OTC) marketplaces for trading fixed-income products, ETFs and derivatives. I am guessing there is greater interest in trading fixed income than a year ago, but that is just a hunch of mine. 

 
Let's see how Tradeweb's charts look.  
 
In this daily bar chart of TW, below, I can see a setup suggesting a coming pullback or correction. Prices broke out on the upside in late March and early April but quickly retreated. Trading volume did not expand significantly and prices have closed below the 50-day moving average line. The daily On-Balance-Volume (OBV) line made a lower high in March/April than the high made in February. This is a bearish divergence and suggests weaker prices may be seen soon. The Moving Average Convergence Divergence (MACD) oscillator shows another bearish divergence with a much lower high than seen in early February. The oscillator is just slightly above the zero line. 
 
 
 
 
In this weekly Japanese candlestick chart of TW, below, I see a mixed picture. Prices are trading above the rising 40-week moving average line. The recent candles represent a top reversal pattern -- a bearish engulfing pattern. The weekly OBV line has moved sideways the past three months and has diverged from the price action. The MACD oscillator is above the zero line but narrowing toward a possible take profits sell signal. 
 
 
 
In this daily Point and Figure chart of TW, below, I can see a potential downside price target in the $61 area. 
 
 
In this second Point and Figure chart of TW, below, I can see the same downside price target as the daily chart above -- $61. 
 
 
 
Bottom line strategy: Ttadeweb Markets may see increased revenue and higher stock prices in the months ahead, but in the near term I worry about a deeper pullback. 
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TAGS: Investing | Stocks | Technical Analysis | Trading | Financial Services | Fintech | Real Money | Brokerages

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