The Trade Desk Inc. (TTD) has declined sharply ahead of its scheduled announcement of fourth-quarter results after the market close Thursday. Consensus estimates are for earnings of $1.17 per share on revenues of $213.4 million. Let's check out the charts of this worldwide advertising technology company.
In the daily bar chart of TTD, below, we can see that prices quickly corrected down through the 50-day moving average line to retest the rising 200-day moving average line. Prices have (so far) bounced off the 200-day line. Prices quickly corrected about 50% of the prior rally from $180 so it is not too surprising to see the stock attract some buying interest.
The On-Balance-Volume (OBV) line has dipped with the price action but it looks like the decline in the OBV line was much shallower than the price decline. A stock that declines on light volume is better than one that declines on heavy volume.
The Moving Average Convergence Divergence (MACD) oscillator has declined since late November and has made a bearish divergence when compared to the price action.
In the weekly bar chart of TTD, below, we can see that prices have been in a strong uptrend the past three years. Prices are above the rising 40-week moving average line and the chart does not reflect Thursday's test of the moving average line.
The weekly OBV line is positive and the MACD oscillator has begun to narrow.
In this first Point and Figure chart of TTD, below, we used daily price data to construct the chart. Here the X's and O's generate a possible downside price target in the $219 area.
In this second Point and Figure chart of TTD, below, we used weekly close only data and a "traditional" scaling method of even dollar increments. Here a bullish price target is displayed.
Bottom-line strategy: TTD has declined with the weakness in the broader market but it tested and held the 200-day moving average. This is not a table-pounding reason to buy but it is a really good start.
