The Trade Desk (TTD) stock has finally served up a rare buying opportunity.
To recap, The Trade Desk is a cutting edge programmatic digital ad placement platform. Simply put, they offer a digital ad auction house. Much like a stock exchange, but for advertising space. Better yet, they offer digital ad space not owned by Facebook or Google.
Clearly, the price chart below identifies the extent of the sell off since late December. Indeed, the technical analysis set up is interesting. Overall, we have a bullish chart pattern setting up a bottom in price.
That is to say we have the following technical set up:
- buyer support at the 200 day moving average
- double bottom
- 2nd sell off on weaker volume
In similar fashion we have yet to see confirmation of a bottom. We are close, but not there yet. Specifically, I’m looking for the RSI, ADX and MACD indicators to confirm the bottom. That is we need the RSI to get back above 50, the ADX to turn down and the MACD to reverse higher.
Conclusion – buy on weakness
It’s been a while since The Trade Desk (TTD) stock has been on sale. Fortunately, you have the opportunity right now to buy TTD on the cheap. Mark my words. This stock is headed higher once all the weak hands have given up. Without a doubt, the entire technology sector is in the final stages of its consolidation before surging higher.
Meanwhile, if you are looking for hot stocks ready to rally higher – checkout the Ultimate Portfolio page for fundamental and technical analysis.
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