DataDog (DDOG) was reviewed on Oct. 12 and things were positive looking, as we wrote, "At this point in time I see no clear reason to change our strategy. Stay long DDOG with a stop below $130. Our price targets remain $165, $170, and then $205 longer-term."
Let's check on the charts again of this company that monitors cloud applications for companies.
In this updated daily bar chart of DDOG, below, we can see that DDOG leaps higher into November and nearly reached our third level price target of $205. Prices have pulled back in recent weeks to break below the rising 50-day moving average line and then pop back above it.
Trading volume has been higher since early November, so we may be seeing some exchange of ownership from strong hands to weaker hands or from buyers at lower levels to buyers at higher levels. The daily On-Balance-Volume (OBV) line shows some softness in recent weeks and that too is a sign of weakness. The Moving Average Convergence Divergence (MACD) oscillator is pointed down and close to crossing below the zero-line.
In this weekly Japanese candlestick chart of DDOG, below, we can see a top reversal pattern. Prices have declined, but we can see two recent lower shadows to suggest that traders have started to reject the lows. The slope of the 40-week moving average line remains positive. The weekly OBV line has been rising for some time now, but shows a dip in November. The MACD oscillator began to narrow last month and tells us the strength of the uptrend is weakening.
In this daily Point and Figure chart of DDOG, below, we can see a potential downside price target in the $139 area.
In this weekly Point and Figure chart of DDOG, below, we can see our previous upside price target of $205.
Bottom line strategy: I will assume that some traders have booked some nice profits with DDOG. Keeping that in mind, I feel like we are playing with the house's money. I would look for DDOG to dip into the $170-$160 area in the near-term for a potential repurchase. Risk to $149 and look for a possible rebound to the $205 area. Be flexible. A new high of $205 could extend the rally further. 
