Trade Desk Stock Jumps 3.78% as Technicals Signal Potential Bullish Reversal

The Trade Desk (TTD) concluded the latest session at $46.15, rising 3.78% and marking two consecutive days of gains totaling 5.05%. This price action occurs against a backdrop of heightened volatility following significant declines earlier in the period.
Candlestick Theory
Recent price action reveals a potential bullish reversal pattern. The September 19 session formed a hammer candle with a close near the high ($44.47), signaling exhaustion of selling pressure. This was confirmed by September 22’s long white candle closing at $46.15, which broke above the September 18 high of $45.68. Key support emerges at $43.10 (September 19 low), while resistance is firm at $46.68 (September 22 high) and further at $50.00. A sustained break above $46.68 could validate reversal momentum.
Moving Average Theory
Long-term moving averages affirm a bearish trend, with the 200-day SMA near $72 and the 100-day SMA near $65 both positioned above the current price. Shorter-term averages show slight improvement; the 50-day SMA near $52 remains above the current close but is flattening. The current price trading below all major averages (50/100/200-day) suggests persistent bearish pressure, though a potential bullish crossover between shorter-duration averages (e.g., 5-day crossing 10-day) may signal near-term recovery potential.
MACD & KDJ Indicators
The MACD histogram has shifted into positive territory, indicating emerging bullish momentum as the MACD line crosses above its signal line. KDJ oscillators support this view, with the %K line (%D) rising from oversold levels below 20 toward neutral territory around 45. While not yet overbought, this momentum shift after a prolonged downtrend may foreshadow near-term upward continuation if crossovers sustain.
Bollinger Bands
Bollinger Bands contracted notably in mid-September, reflecting diminished volatility before the recent breakout. Price has now moved from the lower band toward the upper band ($48.50), with bandwidth expanding again. This price surge coupled with volatility expansion suggests conviction in the breakout, though proximity to the upper band may invite short-term consolidation.
Volume-Price Relationship
Volume patterns lend credibility to recent gains. The September 19 rally occurred on high volume of 52.98 million shares, exceeding the 30-day average. While September 22’s volume of 23.40 million shares was relatively lower, it aligned with the preceding 10-day average. Notably, the August 8 decline (-38.61%) occurred on record volume of 105.36 million shares, establishing $54.23 as a high-volume resistance zone. Current volume-supported gains suggest sustainable buying interest.
Relative Strength Index (RSI)
The 14-day RSI has rebounded from near-oversold territory (30) to 55, reflecting strengthening momentum. While below the overbought threshold of 70, this rise alongside price recovery suggests balanced buying pressure. Traders should monitor for potential bearish divergence if prices stall while RSI ascends.
Fibonacci Retracement
Applying Fibonacci levels to the decline from $52.40 (September 9 peak) to $43.10 (September 19 trough) reveals critical thresholds. The 38.2% retracement at $46.65 aligns precisely with September 22’s intraday high of $46.68, making it immediate resistance. A decisive close above this level could target the 50% retracement near $47.75. The 23.6% level at $45.30 now acts as support, with any retreat below potentially negating the short-term bullish case.
Confluence and Divergence
Confluence is observed at $46.65–46.68, where Bollinger Band resistance, a major Fibonacci level, and the recent candlestick high converge. A confirmed breakout here could accelerate gains. Divergence between indicators is minimal currently, though the MACD/KDJ momentum uptick slightly leads price action, providing early confidence in the rebound. Traders should remain alert to volume contraction near Fibonacci levels, which may indicate false breakouts. Probabilistically, sustained closes above $46.65 would strengthen reversal prospects.