Datadog ( DDOG) monitors cloud applications for companies through analyzing data, monitoring servers, tools, databases, and various services to help companies maximize performance. The stock has been in a decline since November, but now the conditions look improved and a recovery rally could be at hand. 
Let's check the charts.
In this daily bar chart of DDOG, below, we see a mixed picture. Prices are in a downtrend and trade below the negatively sloped 50-day moving average line and below the cresting 200-day line. The On-Balance-Volume (OBV) line shows only a modest decline from February and mild when compared to the price decline. The 12-day price momentum study in the lower panel shows higher lows from January. This tells us that the pace of the decline is slowing and when compared to the price action making lower lows gives us a bullish divergence. Bullish divergences are imprecise timing tools, but can foreshadow rallies if you have patience.
In this weekly Japanese candlestick chart of DDOG, below, we see a possible bullish hammer pattern. Candlestick reversals need confirmation which is so far lacking but could come soon. The weekly OBV line is neutral and the MACD oscillator is still bearish.
In this daily Point and Figure chart of DDOG, below, we can see an upside price target in the $138 area.
Bottom line strategy: Aggressive traders could go long DDOG at current levels risking to $89. A rally back to the $138 area could unfold soon.
