TTD runs into sellers again around 208.99
The Trade Desk Inc. (TTD) Technical Analysis Report for Apr 08, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, TTD ended Wednesday at 207.35 gaining $16.01 (8.37%) on low volume, notably outperforming the S&P 500 (3.41%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (TTD as at Apr 08, 2020):
Wednesday's trading range has been $13.38 (6.79%), that's far below the last trading month's daily average range of $19.86. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for TTD.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
Prices are trading close to the key technical resistance level at 214.95 (R1). After having been unable to move above 210.98 in the prior session, The Trade ran into sellers again around the same price level today, failing to move higher than 208.99. The last time this happened on March 31st, TTD lost -10.73% on the following trading day.
Although the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could speed up should prices move above the nearby swing high at 210.98 where further buy stops might get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for The Trade. Out of 63 times, TTD closed higher 58.73% 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 63.49% with an average market move of 4.17%.