NASDAQ:TTD Back on August 9, I posted that The Trade Desk was showing signs of a double top. Since then, the price has fallen by 30%.
With the adverse reaction to the earnings report on Friday, the risk-reward ratio has improved, and I bought a tiny starter position.
Why?
Well, the stock bounced from the 61.8% Fibonacci retracement, and both RSI and MACD stayed above the previous low, still showing bullish divergences. The area where the stock bounced on Friday is also where the price meets the parallel trendline projection based on the upper trendline.
Can it go to the $55 to $50 range? Absolutely. If that happens, I will have to DCA.
@CottonTop, I wouldn't call it dead cat bounce coz TTD is a very good company with strong cash flow. You use the dead cat bounce on companies that would not survive but saw temporary relieve.