Trade Desk Stock Plunges 3.69% as Bearish Signals Intensify Below Key $70 Resistance

Candlestick Theory
The recent price action of The Trade Desk reveals a distinct bearish trend, characterized by lower highs and lower lows over the past month. Key resistance emerges near $72.37 (June 11 high), while the $66.96 low (June 17) establishes immediate support. A notable bearish engulfing pattern formed on June 16-17, where a 3.37% green candle was completely overshadowed by a 3.69% red candle, signaling strong selling pressure. This pattern coincides with the $69.7 rejection on June 17, reinforcing $70 as a psychological resistance barrier.
Moving Average Theory
The 50-day moving average (approx. 300 daily periods) has crossed below both the 100-day and 200-day averages, confirming a bearish intermediate trend. Current prices ($67.66) trade decisively below the 200-day MA (approximately $85-90 based on long-term data), indicating entrenched bearish momentum. The 50-day MA near $72 acts as dynamic resistance, rejecting multiple rally attempts since mid-May. This configuration suggests persistent downward pressure, with no imminent bullish MA crossovers evident.
MACD & KDJ Indicators
MACD readings show sustained negative territory since early June, with the signal line consistently above the MACD line – a bearish continuation signal. No bullish divergence is observed, suggesting minimal upward momentum. The KDJ oscillator (particularly the %K and %D lines) remains trapped below the 50 midline, reflecting oversold conditions but without reversal triggers. Recent %K dips below 20 (June 16-17) indicate extreme selling pressure, though the absence of upward turns in %D suggests persistent bearish control.
Bollinger Bands
Bollinger Bands underwent significant contraction in May (post-earnings volatility spike) but are now expanding again as selling pressure intensifies. Prices consistently test the lower band, last touching $66.96 on June 17. The widening band separation confirms increasing volatility favoring bears. Closure below the lower band for consecutive sessions signals potential oversold conditions but requires confirmation from momentum oscillators for reversal signals.
Volume-Price Relationship
Volume spikes validate key bearish turning points: the June 5 breakdown (-6.50%) occurred on 12.3M shares (180% above 30-day avg), confirming institutional distribution. Recent bounces (June 16 +3.37%) showed muted volume, indicating weak buying interest. The June 17 decline (-3.69%) saw above-average volume (7.48M vs. 6.7M avg), reinforcing capitulation. This volume profile suggests rallies lack conviction while sell-offs attract participation.
Relative Strength Index (RSI)
The 14-day RSI oscillates near oversold territory, registering 28.6 on June 17. While below 30 suggests oversold conditions, it has lingered here for five sessions without bullish reversal – a sign of sustained bearish momentum. Negative divergence occurred in late May as prices formed lower highs while RSI made higher highs, foreshadowing the current breakdown. Current readings imply downward exhaustion may be nearing, but reversal confirmation requires decisive RSI moves above 40.
Fibonacci Retracement
Applying Fib levels to the March 25 high ($122.23) and December 2024 low ($83.22):
- The 61.8% retracement ($97.30) was breached decisively in May, shifting it to resistance
- Current support clusters at the 78.6% level ($87.75), though prices trade well below this
- The next psychological support aligns with the 100% extension at $83.22
- Repeated rejections near the 50% level ($102.73) in April-May reinforced bearish dominance
Confluence and Divergences
Strong confluence exists at $70-72 resistance, where the 50-day MA, psychological barrier, and volume profile align. The oversold RSI diverges with Bollinger Band behavior – while RSI suggests exhaustion, continuous lower band tags indicate unresolved selling pressure. However, MACD/KDJ synchronization shows no bullish divergences. Key watchpoint: A close above $70 with expanding volume could signal short-term rebound, but the MA structure and Fib resistance above $97 suggest any recovery remains counter-trend within the broader bearish framework.