TTD breaks back above 20-day moving average
The Trade Desk Inc. (TTD) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, TTD finished the month 11.03% higher at 451.32 after surging $21.03 (4.89%) today, significantly outperforming the S&P 500 (0.77%). The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (TTD as at Jul 31, 2020):
Friday's trading range has been $14.39 (3.27%), that's below the last trading month's daily average range of $20.50. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for TTD.
One bullish candlestick pattern matches today's price action, the White Candle.
The market managed to close back above the 20-day moving average at 440.15 for the first time since July 22nd. When this moving average was crossed above the last time on May 29th, TTD actually lost -0.40% on the following trading day. Prices are trading close to the key technical resistance level at 461.35 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 475.67, upside momentum could accelerate should The Trade be able to break out to new highs for the year.
Among the nine 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 70 times, TTD closed higher 61.43% 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 64.29% with an average market move of 4.85%.