Trade Desk Stock Rises 5.18% in Three-Day Rally as Technicals Signal Reversal

The Trade Desk (TTD) gained 1.32% in the latest session, extending its winning streak to three consecutive days with a 5.18% cumulative rally. This recovery follows a significant decline, with the stock trading at $51.55, well below its historical highs near $141.53 in December 2024 and $85.18 in February 2025.
Candlestick Theory
Recent sessions show a bullish Three White Soldiers pattern forming from October 1 to 3, indicating potential trend reversal momentum. Key support resides at the September 19 low of $43.10, while resistance emerges at $54.95 (August 18 high) and $52.53 (August 20 close). The October 1 hammer candle ($48.14–$49.69) signaled rejection of lower prices, validated by subsequent gains.
Moving Average Theory
The stock trades below all major moving averages, confirming a bearish long-term structure. The 50-day MA (∼$59) caps recent rallies, with the 100-day (∼$67) and 200-day (∼$75) sloping downward. A death cross materialized when the 50-day crossed below the 200-day in June, reinforcing bearish dominance. Recovery prospects would strengthen above the 50-day MA.
MACD & KDJ Indicators
MACD (12,26,9) shows a bullish crossover emerging in late September as the signal line converges with the histogram. This aligns with improving momentum after oversold conditions. KDJ (9,3,3) exited oversold territory (K:12, D:18 on September 19) and currently prints K:68/D:60, suggesting bullish acceleration. Neither indicator shows divergence relative to price.
Bollinger Bands
Bands contracted sharply during September's consolidation between $43–$50, signaling reduced volatility. The recent breakout above the 20-day SMA (middle band at $49.80) and upper band ($52.20) signals renewed bullish momentum. Band expansion now supports upside continuation, with the upper band providing dynamic resistance near $53.50.
Volume-Price Relationship
High-volume declines marked capitulation events: August 8 (-38.61% on 105M shares) and September 10 (-11.95% on 48M shares). The recent rally exhibits increasing volume (15.3M, 13.1M, and 11.9M shares sequentially), confirming buyer conviction. Volume spikes on up days (e.g., September 29: +5.30% on 21.1M shares) validate bullish reversals at support.
Relative Strength Index (RSI)
RSI(14) rebounded from deeply oversold 26 on September 19 to a neutral 55 currently, erasing bearish momentum extremes. It has room to advance before testing overbought territory (>70). The September oversold reading preceded the 20% rally from $43.10 lows, demonstrating RSI's predictive utility at extremes.
Fibonacci Retracement
Applying Fib levels to the downtrend from $85.18 (February 13 high) to $43.10 (September 19 low): The 23.6% retracement at $53.12 was breached on October 2. Next resistance aligns at the 38.2% level ($56.17), near the August support shelf. Confluence exists here with the 50-day MA and psychological $55 resistance. The 50% level at $64.14 remains distant resistance.
Confluence and Divergence Observations
Bullish confluence appears at $48–$50, where the hammer candle, volume surge, and oversold RSI/KDJ aligned with Fibonacci 0% base. No significant bearish divergences are evident. The MACD crossover and Bollinger breakout synchronized with the Three White Soldiers pattern, strengthening reversal credibility. Long-term resistance near $55–$57 converges with the 38.2% Fib, 50-day MA, and prior swing highs—making this a critical profit-taking zone.
Note: This technical assessment reflects probabilistic scenarios based on historical patterns. Fundamental shifts or market volatility could invalidate projections.