TTD closes higher for the 3rd day in a row
The Trade Desk Inc. (TTD) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, TTD finished the week 2.53% higher at 307.60 after gaining $3.18 (1.04%) today, outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $4.74 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on May 7th, TTD actually lost -2.17% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (TTD as at May 22, 2020):
Friday's trading range has been $12.46 (4.06%), that's below the last trading month's daily average range of $16.62. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for TTD. Prices continued to consolidate within a tight trading range between 291.73 and 314.98 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and one neutral pattern, the Doji.
Unable to break through the key technical resistance level at 313.99 (R1), the stock closed below it after spiking up to 314.98 earlier during the day. The failure to close above the resistance might increase that levels importance going forward.
Although the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Selling might accelerate should prices move below the close-by swing low at 291.73 where further sell stops could get triggered. With prices trading close to this year's high at 327.35, upside momentum might speed up should The Trade be able to break out to new highs for the year.
Among the six 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 66 times, TTD closed higher 60.61% 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 63.64% with an average market move of 4.59%.