Datadog (DDOG), a producer of monitoring and data analytics systems for cloud computing, spent most of the last year stuck in the red zone of the SIA NASDAQ 100 Index Report. In recent weeks, it has rocketed back up the rankings and yesterday it returned to the Green Favored Zone for the first time since March of 2022. Yesterday it finished in 23rd place, up 4 spots on the day and up 74 positions in the last month.
A new recovery trend in Datadog (DDOG) shares kicked off earlier this month when the shares rallied up off of a base of support near $65.00 that formed over the last two months, The shares have gapped up through both their 50-day and 200-day moving averages on higher volumes, indicating increased accumulation. Since snapping a previous downtrend line, DDOG has continued to climb, clearing $90.00 to trade at its highest level in over six months, confirming ongoing investor interest.
Upside resistance may appear near the $100.00 round number, followed by the August 2022 peak near $120.00. Initial support appears at the 200-day moving average near $80.75.
A major breakout is underway in Datadog (DDOG) shares. After spending 2022 trending downward and the early part of 2023 base building, Datadog has launched into a new recovery trend. Starting with a bullish Triple Top breakout and continuing with bullish Spread Double Top breakouts and the snapping of a downtrend line, the shares have started to rally without even a 3-box correction so far. The advance has extended again with the shares breaking out over $90.00 and clearing their February peak to trade at their highest level since October.
Initial upside resistance may appear near the $100.00 round number, followed by the $109.40 to $118.40 zone where several column highs/lows and a horizontal count converge. Initial support appears near $82.90 based on a 3-box reversal. With its bullish SMAX score increasing to a perfect 10, DDOG is exhibiting strength across the asset classes.
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