Sit Down for This: The Trade Desk Doesn’t Look Like a Good Trade

The Trade Desk Inc. (TTD)  is trading lower Wednesday after reporting earnings Wednesday morning. Despite beating expectations on earnings per share and revenue, the stock is less than one dollar away from making a new 52-week low.

Let’s check out the charts.

In this daily bar chart of TTD, below, we can see that prices are retesting the May and July lows. In the current weak market environment the odds increase for prices to break the lows and head still lower. TTD trades below the declining 50-day moving average line and below the declining 200-day line. The On-Balance-Volume (OBV) line is already at a new low and is foreshadowing new price lows in the days ahead. The Moving Average Convergence Divergence (MACD) oscillator is in a bearish alignment below the zero-line.

In this weekly Japanese candlestick chart of TTD, below, we see a bearish setup. Prices are in a longer-term decline as they trade below the declining 40-week moving average line. The weekly OBV line is in a subtle decline. The MACD oscillator has crossed to the downside for a new outright-sell signal.

In this daily Point and Figure chart of TTD, below, we can see a potential downside price target in the $34 area.

In this weekly Point and Figure chart of TTD, below, we can see that price reached and exceeded a downside price target of $45. A trade at $38 will refresh the downtrend and open the way to further declines.

Bottom line strategy: Markets are forward looking and whatever traders are focused on, it must be bearish. Avoid the long side of TTD as further declines are anticipated.