The Trade Desk Gaps Higher But What Does That Do to the Charts?

The Trade Desk (TTD) gapped higher Wednesday on the heels of a good earnings report and some extra wind in its sails from the inflation number before the market open.

We liked the price action of TTD back on May 24 and wrote that "TTD is being pressured in early trading Tuesday but that may not last and I would expect prices to improve and the early May low to hold. Aggressive traders could begin to probe the long side of TTD later in the afternoon Tuesday risking to $36."

Let's check out the charts again.

In this daily bar chart of TTD, below, we can see that prices have broken the downtrend from November (line not drawn) and are trading above the rising 50-day moving average line. Prices gapped higher and are above the declining 200-day line. The slope of the line is still negative.

The daily OBV line shows some firmness from the middle of July. The MACD has moved above the zero line for an outright buy signal. 

In this weekly Japanese candlestick chart of TTD, below, we see a mixed picture. Prices have not been plotted with the price action today but we can imagine that we are above the 40-week moving average line. The weekly OBV line bottomed in July. The MACD oscillator has crossed to the upside for a cover shorts buy signal. 

In this daily Point and Figure chart of TTD, below, we can see that prices reached and exceeded an upside price target in the $67 area. 

In this weekly Point and Figure chart of TTD, below, we can see that prices reached a price target in the $74 area. 

Bottom line strategy: Traders who are long TTD from our late May recommendation should consider nailing down profits as both the daily and the weekly Point and Figure chart targets have been reached. 

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