TTD dominated by bears dragging the market lower throughout the day
The Trade Desk Inc. (TTD) Technical Analysis Report for Dec 02, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, TTD finished Monday at 227.39 tanking $35.95 (-13.65%) on high volume, notably underperforming the S&P 500 (-0.86%). This is the biggest single-day loss ever recorded for the share. The last time we've seen such an unusually strong single-day loss on October 16th, TTD actually gained 2.89% on the following trading day. The bears were in full control today, moving the market lower throughout the whole session. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (TTD as at Dec 02, 2019):
Monday's trading range has been $35.31 (13.52%), that's far above the last trading month's daily average range of $10.82. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for TTD.
One bearish candlestick pattern matches today's price action, the Black Candle.
The stock closed below the 20-day moving average at 229.03 for the first time since November 8th.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for The Trade. Out of 97 times, TTD closed higher 67.01% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 60.82% with an average market move of 3.67%.