• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Doug Kass
    • Bruce Kamich
    • Jim Cramer
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing

The Trade Desk Could Weaken Further So Take Your Time Buying

Let's review the charts and indicators.
By BRUCE KAMICH
Mar 13, 2020 | 09:31 AM EDT
Stocks quotes in this article: TTD

During the popular 'Lightning Round' segment of Mad Money Thursday night, one caller asked Jim Cramer about The Trade Desk (TTD) : "I still like it, but buy in increments," said Cramer. Let's check out the charts.  

 
In this daily bar chart of TTD, below, we can see that prices have surrendered most of 2019's gains in just the past few weeks. There are lots of other charts with that condition. TTD is trading below the declining 50-day moving average line and below the cresting 200-day moving average line.
 
The trading volume has been heavier since the beginning of the new year and the On-Balance-Volume (OBV) line shows a peak in early January. The decline in the OBV line is a sign that the sellers of TTD have been more aggressive.
 
The Moving Average Convergence Divergence (MACD) oscillator is still in a bearish configuration below the zero line. When the MACD oscillator begins to narrow it will be a positive signal that most of the damage is behind us.  
 
 
In this weekly bar chart of TTD, below, we can see that prices have made a big upside run the past three years. Unlike prior pullbacks or corrections, TTD is well below the rising 40-week moving average line.
 
The weekly OBV line has been showing weakness since early 2019 suggesting that we have seen a significant period of distribution (selling).
 
The MACD oscillator on this longer time frame shows both a bearish divergence with a lower high when prices made a higher high and a take profits sell signal. 
 
 
In this daily Point and Figure chart of TTD, below, we can see that prices have been down in this area before (another way of saying the upper $180's could be support) but also that a possible downside price target of $145 can be projected.  
 
 
Bottom line strategy: Because there are some clear bearish signals on TTD, I would agree with Jim Cramer's approach of buying TTD in increments.
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Trading | Software & Services | Technology | Technology Hardware & Equipment | Mad Money

More from Investing

Lesson of the Day: One Man's 'Junk' Is Another Man's Momentum Stock

James "Rev Shark" DePorre
Feb 24, 2021 4:57 PM EST

Stock pickers are back, and they working on short squeezes again.

Precious Metal Name Penoles Comes With Peril

Bruce Kamich
Feb 24, 2021 2:14 PM EST

Our series on metals continues with Industrias Penoles from Mexico, and it's only for experienced traders.

There's a Green Day Coming in Apple

Mark Sebastian
Feb 24, 2021 1:56 PM EST

These calls are going to end up in the money.

Shark Bites: Using Game Theory to Trade the New Soaring Eagle SPAC

James "Rev Shark" DePorre
Feb 24, 2021 1:50 PM EST

This game being widely played right now is part of the reason it is so easy for new SPACs to keep raising money.

QuantumScape May Pressure Longs in the Weeks Ahead

Bruce Kamich
Feb 24, 2021 1:40 PM EST

Time to review the charts and indicators.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 08:36 AM EST GARY BERMAN

    Wednesday Morning Fibocall for 2/24/2021

    SPX (Long-Term View) The 2/16 HIGH @ 3950.43 is ...
  • 08:30 AM EST GARY BERMAN

    Tuesday Morning Fibocall for 2/23/2021

    SPX (Long-Term View) The 2/16 HIGH @ 3950.43 is ...
  • 04:52 PM EST CAROLYN BORODEN

    WMT Updated

    View Chart » View in New Window » Since we vio...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2021 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login