Key Takeaways
- Datadog shares stay in focus after hovering to a six month excessive on the finish of final week on information that the cloud monitoring firm can be becoming a member of the S&P 500 on July 9.
- The inventory broke out from a rising wedge sample on the best each day quantity since going public in September 2019.
- Traders ought to watch key overhead areas on Datadog’s chart round $170 and $205, whereas additionally monitoring necessary assist ranges close to $135 and $125.
Datadog (DDOG) shares stay in focus after hovering to a six-month excessive on the finish of final week on information that the cloud monitoring firm can be becoming a member of the S&P 500 on July 9.
Usually, shares that get included into benchmarks like the massive cap S&P 500 obtain a lift as they grow to be seen to new buyers and get added to index-tracking exchange-traded funds (ETFs).
Datadog shares misplaced greater than half their worth between December and April as uncertainty over the Trump administration’s tariffs and downbeat earnings projections from the compamy pummeled the inventory. Nevertheless, they’ve practically doubled from their 2025 low and are up about 9% for the reason that begin of the yr, boosted by renewed investor urge for food for cloud and AI shares. The inventory jumped 15% to round $155 on Thursday, forward of the July 4th break.
Under, we take a better have a look at Datadog’s chart and use technical evaluation to level out worth ranges that buyers will possible be watching.
Bullish Rising Wedge Breakout
After bottoming in early April, Datadog shares traded greater inside a rising wedge earlier than staging a decisive breakout in Thursday’s buying and selling session. Importantly, the leap occurred on the best each day quantity for the reason that inventory went public in September 2019, signaling sturdy shopping for conviction from bigger market members.
Whereas the relative energy index confirms bullish worth momentum, it additionally flashes excessive overbought circumstances, probably elevating the opportunity of short-term profit-taking.
Let’s determine two key overhead areas on Datadog’s chart to observe and find necessary assist ranges value monitoring.
Key Overhead Areas to Watch
Comply with-through shopping for this week may see the shares climb to the $170 space. The worth could run into promoting strain on this location close to the outstanding December swing excessive.
Traders can mission an upside goal above this space through the use of the bars sample device. When making use of the evaluation, we take the inventory’s development greater that adopted an earlier breakaway hole on the chart in November 2023 and reposition it from the low of Thursday’s hole. This tasks a bullish goal of round $205, about 32% above final week’s closing worth.
Essential Help Ranges Price Monitoring
Revenue-taking within the inventory may see a retracement towards $135. This space would possible appeal to sturdy assist close to a trendline that connects the highest of the rising wedge with a sequence of worth motion on the chart stretching again to January final yr.
A deeper correction may set off a decline to decrease assist round $125. Datadog shares discover a confluence of assist on this area close to the 200-day transferring common and a horizontal line that hyperlinks a spread of corresponding buying and selling exercise on the chart between December 2023 and June this yr.
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