The Trade Desk Goes From So-So to No-No as Its Revenue Forecast Disappoints
Its shares are plunging and should be avoided.
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The Trade Desk TTD has lost nearly a quarter of its market value in the pre-market here on Friday after Thursday's light fourth-quarter revenue forecast. Let's review the charts and indicators of the provider of digital advertising technology for new downside price targets for The Trade Desk, which I reviewed back on Aug. 9.
In this daily bar chart of TTD, below, I can see the past 12 months of price action but need to imagine an opening price in the $58 area. Prices will make a serious downside price gap well below the rising 200-day moving average line. The 50-day moving average line was already in a downward trend. The daily On-Balance-Volume (OBV) line has been weakening since the middle of July and tells us that sellers of TTD are more aggressive than buyers of the stock. The Moving Average Convergence Divergence (MACD) oscillator is already below the zero line.
In this weekly Japanese candlestick chart of TTD, below, I can see a weak picture before today's opening. Prices should open well below the rising 40-week moving average line. The weekly OBV line has declined the past four months. The MACD oscillator has been correcting lower since August. The lows of 2022 are a likely price target in the weeks ahead.
In this daily Point and Figure chart of TTD, below, I used close-only price data. Here the software projects a price target of $53 -- almost there.
In this weekly close-only Point and Figure chart of TTD, below, I used a five-box reversal filter. Here the chart suggests a longer-term price target in the $32 area.
Bottom line strategy: A Point and Figure chart target of $32 suggests a lot more pain ahead. Avoid the long side of TTD.
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