Trade Desk Stock Plunges 6.5% to $71.11 Amid Heavy Selling Volume

The Trade Desk (TTD) declined 6.50% in the most recent session to close at $71.11, a drop characterized by high trading volume of 12.23 million shares and a wide price range between $70.995 and $77.57. This movement forms a critical juncture for technical evaluation, integrating multiple analytical perspectives below.
Candlestick Theory
Recent candlestick activity reveals a decisive bearish signal. The June 5 session produced a long-bodied red candle that closed near its low after breaching the prior day’s support of $74.345. This breakdown from a consolidation range ($73–$77) signals increased selling pressure. Key support now resides near the psychological $70 level, validated by the May 9 closing low of $71.04. Resistance emerges at $74.35 (recent swing low) and $76.52 (June 4 high), with a close above $77.57 required to invalidate the bearish structure.
Moving Average Theory
The moving average configuration reflects entrenched bearish momentum. The 50-day SMA (approximately $78) and 200-day SMA (around $85) both slope downward, with the price trading below all three key SMAs. Notably, the 50-day SMA crossed below the 200-day SMA in April 2025, confirming a "death cross" that reinforces the long-term downtrend. Recent rejections near the 50-day SMA further emphasize its role as dynamic resistance. Sustained trading below these averages signals persistent weakness, though an oversold bounce toward the 50-day SMA may develop if selling abates.
MACD & KDJ Indicators
Momentum oscillators corroborate bearish conditions but hint at short-term exhaustion. The MACD histogram remains in negative territory, with the signal line above the MACD line—a configuration favoring downside continuation. However, the histogram’s minor convergence suggests slowing bearish momentum. Meanwhile, the KDJ oscillator shows an oversold signal, with the K-line (currently near 20) and D-line crossing below 30. While this implies potential for a technical bounce, the J-line’s deep dive below zero reflects intense selling pressure. Divergence is absent; both oscillators align with the price descent, indicating no immediate reversal signal.
Bollinger Bands
Bollinger Bands exhibit heightened volatility, with the June 5 close near the lower band ($70.50–$71 estimated). The band width expansion during the selloff reflects strong directional momentum. Price trading below the lower band typically signals an oversold condition but can also indicate continuation in strong trends. A move back inside the bands ($72–$73) would suggest stabilization, while failure to reclaim the middle band (20-day SMA near $74) would reinforce bearish control. The bands’ current trajectory favors downside follow-through unless volume diminishes.
Volume-Price Relationship
Volume analysis validates bearish conviction. The 6.50% decline occurred on 12.23 million shares—nearly triple the 30-day average volume—signifying institutional distribution. Downside volume surges have consistently accompanied breakdowns, as seen during the May 29–June 5 descent, contrasting with muted volume during recovery attempts like the June 4 2.22% gain (4.94 million shares). This volume asymmetry indicates weak demand and strengthens the $70 support’s significance; a breakdown below this level with sustained high volume would portend further declines.
Relative Strength Index (RSI)
The 14-day RSI has entered oversold territory, plunging to approximately 28. This reading suggests exaggerated downside momentum and heightens the risk of a technical bounce. However, RSI divergence is absent; new price lows coincide with new RSI lows, affirming the downtrend. Given the stock’s history of extended oversold conditions (e.g., RSI held below 30 for multiple sessions in March 2025), a single oversold signal carries limited predictive power. Investors should wait for RSI to reclaim 30 and demonstrate upward momentum before considering reversals.
Fibonacci Retracement
Applying Fibonacci levels to the swing low of $53.74 (March 13, 2025) and high of $79.14 (May 14, 2025), key retracement zones emerge. The 61.8% level at $71.79 was breached intraday on June 5, settling marginally below at the close. This breakdown points toward the 78.6% retracement at $65.21 as the next downside target. Confluence exists at $70 (psychological support and the 70.7% retracement), making it a critical inflection point. Any recovery must reclaim $74.15 (50% retracement) to shift near-term sentiment.
Confluence and Divergence Summary
Multiple indicators converge at $70 support, including:
- Candlestick swing low and psychological level
- 70.7% Fibonacci retracement
- Volume-validated breakdown acceleration
- RSI oversold warning
Notable divergences are absent, though short-term indicators (RSI, KDJ) show oversold readings that may precede a technical bounce. The primary trend remains bearish below $74.15 resistance, with high-volume breakdowns and moving average alignment favoring downside continuation toward $68–$65. A sustained close above $77.57 would invalidate the bearish structure.