Chart of the Day: This Tech Holding Is Ready to Break Out
The stock is building a nice, strong base with tight price action.
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As legendary market technician Louise Yamada once said, "the longer the base the higher the space." What this means simply is the longer it takes for a stock to move sideways before it breaks out, the stronger the breakout when it actually occurs. Such is the case for The Trade Desk TTD, which has moved sideways just under the $120 level a couple weeks.
What is fascinating, the stock won't break below $115 but cannot close above $120! This tight base tells us buyers and sellers are satisfied with the current price level, but it won't stay here for too much longer. Earnings are out in about 10 days but other earnings this week (like Alphabet GOOGL) might have some influence on TTD shares.
The chart is firm, with strong money flow but momentum is starting to slow down (stochastics), along with the Moving Average Convergence Divergence (MACD). That makes sense, the stock has stopped moving up after a nice run higher early in the month.
If this basing action continues and a breakout finally occurs, TTD could see a move to the $140's.
We like The Trade Desk and rate it a Two in TheStreet Pro Portfolio.
More Pro Portfolio:
- We're Adding Shares and Upping Our Price Target on This Holding Amid Record Backlog
- Weekly Roundup: Multiple Points of Confirmation for Our Portfolio Positioning
- AI Generates News: A Look at the Headlines That Speak to Our Stocks
At the time of publication, TheStreet Pro Portfolio was long TTD and GOOGL.
