TTD closes below its opening price unable to hold early session gains
The Trade Desk Inc. (TTD) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
TTD finished Wednesday at 441.31 losing $3.99 (-0.9%), slightly underperforming the S&P 500 (-0.46%). Trading $12.97 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (TTD as at Sep 16, 2020):
Wednesday's trading range has been $17.11 (3.85%), that's slightly below the last trading month's daily average range of $21.63. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for TTD.
One bearish candlestick pattern matches today's price action, the Shooting Star.
After spiking up to 457.51 during the day, the market found resistance at the 50-day moving average at 455.49. The last time this happened on April 20th, TTD lost -7.23% on the following trading day.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Trading close to July's low at 404.00 we could see further downside momentum if potential sell stops at the level get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 50" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for The Trade. Out of 15 times, TTD closed higher 53.33% 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 93.33% with an average market move of 21.32%.