Trade Desk Stock Falls 4.40% Amid Persistent Bearish Technical Signals

The Trade Desk (TTD) declined 4.40% on August 19, 2025, closing at $52.53 after facing rejection near the $55.17 intraday high. This price action unfolds within the context of a volatile downtrend initiated by the August 8, 2025, earnings-driven collapse from $88.33 to $54.23, with technical indicators revealing mixed signals across timeframes.
Candlestick Theory
Recent sessions exhibit bearish continuation signals. The August 19 candle formed a long upper wick after testing $55.17 resistance, closing near its low at $52.53 – confirming persistent selling pressure. Key support resides at $50.21 (August 14 low), while resistance is firmly established between $55.40 (August 18 high) and $57.00 (August 8 gap-down point). The rejection at $55.17 created a bearish resistance confluence near the post-crash swing high.
Moving Average Theory
TTD trades decisively below all major moving averages, confirming a bearish structural trend. The 50-day MA (approximated near $63) capped the August 18 rally, while the 100-day MA (∼$68) and 200-day MA (∼$72) slope downward overhead. This configuration reflects entrenched selling pressure, with any recovery likely facing dynamic resistance near these declining averages.
MACD & KDJ Indicators
The MACD histogram remains in negative territory, though its slope has flattened – suggesting bearish momentum may be decelerating but not yet reversing. KDJ oscillators recently exited oversold territory, with the August 18 close at $54.95 pushing the K-line above 50. However, the subsequent selloff has triggered a bearish crossover (K-line descending through D-line), indicating fading recovery momentum. Both oscillators concur that upside potential remains limited without stronger bullish confirmation.
Bollinger Bands
Volatility remains elevated since the August 8 breakdown, with bands wider than historical norms. Price trades near the lower Bollinger Band ($51–$52 approximation), reflecting ongoing downward pressure. Band contraction during August 15–18 signaled reduced volatility before the August 19 expansion, indicating renewed directional momentum to the downside. Sustained trading below the lower band would signal oversold extremes.
Volume-Price Relationship
Distribution is evident through elevated volume on downswings (e.g., 34M shares on August 14’s -6.62% session). The August 18 rally on 16.7M shares showed modest accumulation, but the subsequent 13.5M-share selloff on August 19 exceeded its 30-day average volume, confirming bearish conviction near resistance. Volume divergence remains a concern – downside moves attract significantly higher participation than rebounds.
Relative Strength Index (RSI)
The 14-day RSI (approximated at 42) holds in neutral territory after bouncing from oversold conditions near 30 following the August 14 low. Notably, it failed to breach 50 during the recent recovery, reflecting weak underlying momentum. Current levels show no divergence against price, suggesting no immediate reversal signal. The indicator would need to hold above 40 to prevent renewed bearish momentum acceleration.
Fibonacci Retracement
Applying Fibonacci levels to the $88.33 (August 7 high) to $50.21 (August 14 low) collapse reveals critical thresholds: 23.6% ($59.21), 38.2% ($64.77), and 61.8% ($73.76). The rejection at $55.17 occurred well below the 23.6% level, reinforcing its technical significance as primary resistance. The current price positions TTD near the 0% retracement level, with a breach of $50.21 opening significant downside risk toward psychological support at $45–$48.
Confluence and Divergences
Multiple indicators converge at the $55–$56 resistance zone: the August 18 swing high, 20-period Bollinger midline, and pre-breakdown consolidation area. However, a notable divergence exists in volume characteristics – downside moves exhibit higher conviction than rebounds. The KDJ’s bearish crossover also diverges from MACD’s flatlining momentum, creating uncertainty. Only a sustained break above $57 would signal technical recovery potential, while failure at $50 support may accelerate selling pressure toward the $45–$48 historic demand zone.