Datadog Inc. - (DDOG) - November 14, 2023
Datadog (DDOG) produces system monitoring and data analytics software for cloud computing service providers. The market seems to have a love-hate relationship with this stock, which has staged multiple swings back and forth between the red zone and the Green Favored zone of the SIA NASDAQ 100 Index Report over the last year.
Currently, DDOG appears to be back in favor with investors having jumped 51 positions in the last month, to 14th place. With this move, the shares have returned to the Green Favored Zone for the first time since August. Since selling off in the first part of 2022, Datadog (DDOG) shares have been stuck in a wide trading range between $60.00 and $120.00. Over the last six months, the floor of this range has moved up toward $80.00, especially after a successful support test two weeks ago that established a higher low.
Last week, significant new interest moved into the stock sending the shares soaring back up above the $100.00 round number on a big spike in volume. This week, the shares have remained supported above $100.00, a sign of renewed accumulation. Initial upside resistance appears at the top of the medium term range in the $116.00 to $120.00 area, followed by the $125.00 round number.
An eighteen-month downtrend in Datadog (DDOG) shares bottomed out back in May, and for the last six months, it has been attracting renewed interest from investors. The shares staged an initial recovery rally from May to August, followed by a correction that bottomed out at a higher low earlier this month.
Accumulation has accelerated recently with the shares driving up from below $80.00 back above $100.00, completing bullish Double Top and Spread Double Top breakouts along the way. Initial upside resistance appears near $113.80 based on a horizontal count, followed by the August high near $118.45, and then $125.70 based on previous column lows. Initial support appears near $95.25 based on a 3-box reversal.
With a perfect SMAX score of 10, DDOG is exhibiting strength across the asset classes.
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