Key takeout
Stocks in Datadog (DDOG) are focused on the news that the cloud surveillance company will join the S&P 500 on July 9th after rising to six months’ heights at the end of last week.
Stocks in benchmarks, such as the larger CAP S&P 500, will usually be visible to new investors and will receive a boost when added to index tracking exchanger funds (ETFs).
Datadog’s stock lost more than half its value between December and April, as uncertainty about the Trump administration’s tariffs and forecasts of declined earnings from stocks is forecasts of low income from stocks. However, they have almost doubled from the low 2025, up about 9% since the start of the year, boosted by the updated investor desire for cloud and AI inventory. Ahead of the July 4 break, it rose 15% to $155 on Thursday.
Below we take a closer look at DataDog’s charts and use technical analysis to point out the price levels investors are seeing.
Bullish Rising Wedge Breakout
After bottoming in early April, Datadog shares traded higher within the rising wedge before making a decisive breakout in Thursday’s trading session. Importantly, since the stock went public in September 2019, the jump has occurred at the highest volume every day, indicating a strong purchase conviction from large market participants.
The relative strength index checks bullish price momentum, but extreme excess conditions can also flash, increasing the chances of short-term profit acquisition.
Identify two important overhead areas on Datadog’s charts and watch and find out the key support levels worth watching.
Important overhead areas to watch
This week’s follow-through purchase could cause stocks to rise to the $170 area. Prices could be subject to sales pressure at this location near the famous December swing high.
Investors can use the bar pattern tool to project an upward target over this area. Applying the analysis, we appreciate the trends in stocks relocating from the low gap on Thursday, following the early breakaway gap on the charts in November 2023. This predicts a bullish target of around $205, about 32% above last week’s closing price.
Important level of support worthy of monitoring
Earning profits on the stock could lead to a setback to $135. This area could attract strong support near trendlines that connect a set of price actions on the chart, dating back to January last year.
A deeper fix could refuse to cut back on support around $125. Datadog stocks find a horizon linking support confluence in this area near the 200-day moving average and a variety of corresponding trading activities on the chart between December and June this year.
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As of the date this article was written, the author does not own the above securities.
