The Charts -- and the Data -- Support Datadog

Here's how DDOG is emerging from a base formation.

Datadog (DDOG)  is a software as a service-based monitoring and analytics service for applications and infrastructure. OK, the company's role is above my pay grade. The charts and indicators of DDOG, however, are not, and I see they are still positioned for further gains.

Let's review the charts and indicators. 

In this daily bar chart of DDOG, below, I can see that prices have been bottoming since November. Dips into the $70-$60 area were being bought into early May. As May unfolded so did a rally. Prices quickly climbed above the 50-day and the 200-day moving average lines. The trading volume has been more active since September. The On-Balance-Volume (OBV) line moved sideways in March and April and turned strong in May. The Moving Average Convergence Divergence (MACD) oscillator is bullish. 

 

In this weekly Japanese candlestick chart of DDOG, below, I see a positive picture. Prices are trading above the bottoming 40-week moving average line. The weekly OBV line has firmed from December and tells me that buyers of DDOG have been more aggressive. The MACD oscillator is ready to cross above the zero line for an outright buy signal. 

 

 

In this daily Point and Figure chart of DDOG, below, I can see a price target in the $111 area. 

 

In this weekly Point and Figure chart of DDOG, below, I can see a potential upside price target in the $180 area. 

 

 

Bottom line strategy: Traders could probe the long side of DDOG in the $100-$90 area. Risk to $84. The $180 area is my longer-term price target. 

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