Trade Desk Stock Is Forming Into A Pennant Pattern, Could See A Breakout

The Trade Desk Inc. TTD shares are moving up as retail traders push the stock higher amid strength in advertising technology stocks after Google announced it's delaying the phase-out of third-party cookies on Chrome until 2023.

The stock recently had a 1-for-10 split that dropped the price by 10 times while giving shareholders 10 times the shares they had previously.

The Trade Desk was up 16.7% at $76.32 at last check.

The Trade Desk Daily Chart Analysis

• Shares are forming into what technical traders would call a pennant pattern. The pattern still looks to be in the early stages and may take some weeks before a breakout.
• The stock is trading above the 50-day moving average (green), and crossed above the 200-day moving average (blue), indicating sentiment in the stock is likely turning bullish.
• Each of these moving averages may be areas where the stock finds support in the future.

Key The Trade Desk Levels To Watch

• The stock ran up to resistance in the pennant pattern that has formed throughout the past six months.
• The price will likely continue to be condensed between narrowing highs and lows until the stock is able to break above the pattern support or resistance and possibly see a strong move in the same direction.
• The Relative Strength Index (RSI) moved higher Thursday into the overbought range. This range starts at 70 and goes through 100. The Trade Desk has an RSI of 75 as of Thursday, which means there are many more buyers in the stock than there are sellers.

What’s Next For The Trade Desk?

Bullish technical traders would like to see the stock continue to trade within the pennant pattern and trade near the pattern resistance. Eventually, bulls would like to see the stock break out of the pennant pattern and see a large bullish move.

Bearish technical traders would like to see the stock fall to the bottom of the pennant pattern before breaking below the pattern support. If the stock were to fall out of the bottom of the pennant, it may see a strong bearish move. Bears would also like to see the stock fall below the moving averages for a possible change of trend.