Trade Desk Stock Jumps 4.28% Amid Bullish Technical Signals

The Trade Desk (TTD) rose 4.28% in the most recent session, closing at $89.76 on elevated volume. This price action occurs within a broader technical context that warrants multi-indicator analysis.
Candlestick Theory
TTD formed a bullish engulfing pattern on August 4th as its body completely enveloped the prior day's candle, signaling conviction after a brief pullback. This reinforces $86.76 as immediate support, established at the session low. Resistance is evident near $90.00, where the August 4th high ($89.81) aligns with the July 29th swing high ($89.13). A confirmed breakout above $90 would invalidate the double-top pattern attempted in late July.
Moving Average Theory
The 50-day MA ($83.20), 100-day MA ($78.10), and 200-day MA ($72.40) demonstrate a bullish hierarchy with shorter-term averages above longer-term ones. Price trading above all three confirms the primary uptrend. Notably, the 50-day recently crossed above the 100-day in mid-July, reinforcing intermediate strength. The expanding distance between the 50-day and 200-day MA (+28%) highlights accelerating momentum.
MACD & KDJ Indicators
MACD (0, -1, 9 settings) shows a bullish crossover on July 30th, with the histogram expanding positively since – confirming upward momentum. However, KDJ (9,3,3 settings) presents a cautionary signal: The %K (89) and %D (85) lines are deeply overbought above 80, with %J (97) signaling extreme extension. This divergence between MACD’s continued bullishness and KDJ’s overbought exhaustion suggests near-term consolidation risk.
Bollinger Bands
Price is currently testing the upper Bollinger Band ($89.50) with bands expanding after a late-July contraction period, indicating volatility reemergence. This breakout attempt is technically valid only if accompanied by sustained volume. Conversely, rejection here could retest the 20-day midline ($86.40), coinciding with the 50-day MA. The 6% band width remains above the YTD average, suggesting ongoing volatility sensitivity.
Volume-Price Relationship
August 4th's rally occurred on 8.28M shares, 12% above the 20-day average, confirming bullish conviction. Notable volume surges accompanied the May earnings gap (71.3M shares) and July 17th spike (111.5M shares), validating key trend inflection points. However, the July 29th breakdown (-4.44%) saw even higher volume (10.44M shares), making $84.50–$85.00 a critical volume-based support zone.
Relative Strength Index
The 14-day RSI (68) remains below overbought territory but shows a bearish divergence: Price reached higher highs in late July and early August while RSI peaked at 76.5 in mid-July. This loss of momentum suggests resistance tests may struggle without consolidation. Critical support holds at RSI 40, aligning with the 50-day MA, while sustained strength requires holding above 60.
Fibonacci Retracement
Applying Fib levels to the dominant uptrend from the April 8th low ($45.27) to the August 4th high ($89.81) shows key retracement zones: 38.2% ($73.50), 50% ($67.50), and 61.8% ($61.50). The $73.50 level notably aligned with the June consolidation floor, reinforcing its significance. Confluent support emerges at $80.00, where the 23.6% Fib retracement intersects with the 100-day MA and horizontal price structure.
Confluence & Divergence Summary
Bullish confluence appears with the moving average stack, MACD crossover, and volume-supported breakout attempt. However, KDJ overbought conditions and RSI bearish divergence temper upside expectations. Critical support resides at $84.50 (volume-based) then $80.00 (MA/Fib confluence), while sustained rallies require clearance of $90.00 resistance with continued volume backing.