Shares of Datadog Inc. (DDOG) rallied to a new all-time Wednesday on news of a new strategic partnership. Datadog will be available on Microsoft's (MSFT) Azure as a first-class service, which means the setup will be automatic. DDOG rallied over 12% Wednesday so let's check out the charts now.
On Sept. 8 we wrote that "The charts of DDOG have improved a lot since our last look in April. The longer DDOG holds above its August low the stronger it looks. Aggressive traders could go long at current levels risking a close below $71."
In the updated daily bar chart of DDOG, below, we can see a bullish picture leading up to Wednesday's upside breakout. Prices traded around the 50-day moving average line in August and early September but moved above the line as we moved through the month. The slope of the 50-day line turned positive before the breakout.
The On-Balance-Volume (OBV) line has been steady the past four months even while prices moved sideways to lower. I consider a steady OBV line in the face of weak prices a constructive sign. The Moving Average Convergence Divergence (MACD) oscillator crossed back above the zero line last week for a buy signal ahead of the breakout.