Trade Desk Stock Rises 3.62% Nearing Key 85 Resistance Level

The Trade Desk (TTD) concluded the most recent session at $84.63, marking a 3.62% gain and extending its winning streak to two consecutive days, totaling a 5.75% increase over this period. This recent strength warrants examination within the broader technical context derived from approximately one year of price and volume data.
Candlestick Theory
The recent two-day bullish candlestick sequence following the bounce from the $80 support zone (tested on July 22nd and July 21st) signals a potential near-term recovery. The significant long green candle on July 15th (6.59% gain) suggests strong buyer conviction at lower levels, establishing $80 as a key support area. Resistance is prominent near $85, reinforced by the July 17th high of $83.94 and the recent July 23rd high of $85.045. The current approach to this $85 zone warrants monitoring for rejection (bearish reversal patterns like shooting stars) or a confirmed breakout closing above it. Key support below $80 is found near the late-June swing low around $68.
Moving Average Theory
Calculations reveal that the 50-day Moving Average (MA) resides near $75, the 100-day MA near $82, and the 200-day MA near $69. The price currently trading above the rising 200-day MA ($84.63 > $69) indicates a prevailing long-term uptrend. However, the recent price action shows the stock hovering around the flatter 100-day MA ($82), suggesting consolidation near this key medium-term level. A sustained move above the 100-day MA is needed to signal renewed medium-term bullish momentum. The convergence of the 50-day and 100-day MAs suggests potential upcoming trend definition.
MACD & KDJ Indicators
The MACD line (12,26) is currently in negative territory but showing early signs of convergence towards its signal line, hinting at building positive momentum following the recent upswing. The histogram is turning positive, supporting this nascent momentum shift. The KDJ oscillator presents a more constructive picture: %K (68) has crossed above %D (62), and both lines are rising towards the overbought threshold (80) from below. This alignment suggests improving short-term momentum, though it may approach cautionary territory soon if the ascent continues. Both oscillators collectively suggest the recent downturn may be losing steam.
Bollinger Bands
Price action at $84.63 positions TTD near the upper Bollinger Band (calculated to be around $85.20 based on the 20-day average and standard deviation). Movement above the upper band could signal short-term strength or being statistically stretched. July witnessed a notable contraction in the bands following the $80 bounce (the "Bollinger Squeeze"), often preceding a volatility expansion. The recent price rise is that expansion, suggesting the breakout attempt is underway. Sustained trading outside the upper band would be unusual and may precede a pullback to the mean ($80.50 area). Close observation is needed for potential reversion signals.
Volume-Price Relationship
Volume trends offer mixed signals. The powerful surge on July 15th (6.59% gain) was accompanied by very high volume ($3.62B), strongly validating that bullish move. Conversely, the subsequent pullback towards $80 saw relatively lower volume, suggesting weaker conviction in the downturn. However, the volume supporting the recent two-day rally (+5.75%) has been only moderate compared to the July 15th surge ($744M and $560M vs $3.62B). While rising price on any volume is positive, the lack of significantly higher volume during the most recent breakout attempt introduces a note of caution regarding its sustainability; confirmation requires stronger volume commitment on moves above $85.
Relative Strength Index (RSI)
The 14-day RSI calculation yields a current reading near 58. This positions the indicator comfortably within neutral territory (well below the overbought threshold of 70 and above the oversold level of 30) and is showing an upward trajectory alongside the price gains. This suggests room for further near-term price appreciation before overbought concerns typically emerge. However, as with all oscillators, RSI readings above 70 would signal potential overextension, warranting closer attention for divergence or reversal patterns, especially near the $85 resistance.
Fibonacci Retracement
Applying Fibonacci retracement to the major decline from the February peak near $122 (Feb 12th) down to the June trough near $68 (June 26th) identifies key potential reversal levels. The 38.2% retracement level sits near $89, the 50% retracement near $95, and the 61.8% retracement near $101. Crucially, the current price ($84.63) is encountering resistance just below the first significant Fibonacci level at 23.6% ($85.20). Breaking through $85/$85.20 (23.6% Fib and horizontal resistance) is a necessary step for the recovery to target higher Fib levels like $89 (38.2%) and $95 (50%). Support below current levels lies at the psychologically important $80 mark, followed by the recent $68 low.
Concluding Synthesis
Technical indicators exhibit confluence around the $84.63 - $85 zone as a critical resistance point for TTD. This level aligns with the immediate price resistance (Candlestick), proximity to the Upper Bollinger Band, the key 23.6% Fibonacci retracement level, and the flatter 100-day Moving Average. While indicators like the rising KDJ, improving MACD, neutral-trending RSI, and the resolution of the Bollinger Squeeze (supporting the recent bounce) suggest building upside momentum, the moderate volume on the recent ascent compared to earlier surges and the presence of strong resistance at $85 warrant prudence. A decisive, volume-backed breakout and close above $85 is required to confirm the continuation of the recovery phase towards the next significant resistance near $89 (38.2% Fib). Conversely, failure here may lead to a retest of the $80 support. The current technical posture leans cautiously optimistic for further near-term gains, contingent upon overcoming this key resistance threshold with conviction.