This DDOG has some bark – January 17, 2024
This is Scott with your Chart of the Day. I want to take a look at Datadog ( NASDAQ: DDOG ).
Datadog ( NASDAQ: DDOG ) had a rough 2022, like a lot of other technology stocks. But in 2023, this stock firmed up. And now we see it here, in 2024, above all the key moving averages. We see Datadog ( NASDAQ: DDOG ) with a clear short base of consolidation, a little dippity-do to the 50-day, a nice recovery, and back near the highs.
That’s what you want to see, if a stock is pulling back to the 50-day moving average you want to see those buyers step in and, ideally, you want to see a quick recovery back to all the major moving averages. And that is what we saw here with Datadog ( NASDAQ: DDOG ).
Now, today we see DDOG ( NASDAQ: DDOG ) just kind of breaking out above this short base of resistance but it did it on pretty good volume. Higher than average volume here on the breakout. I talked yesterday about looking for breakouts in stocks and really talking about that volume and how I use volume as a clear signal to trust the breakout.
Of course, it doesn’t always work. No signal is perfect but, probabilistically, I find following that big volume has kept me on the right side of the trade more times than not. I see a nice breakout here on Datadog ( NASDAQ: DDOG ), on higher-than-average volume. I think this is definitely a stock you want to keep an eye on.
It is a bit extended above the 8 and 21-day, that’s the orange and blue line here. But if you have an opportunity, I’d watch for this stock to just pull back into the moving average and give you a lower cost basis. As opposed to, trying to buy this thing near the highs. So Datadog ( NASDAQ: DDOG ), running into earnings coming up here in early February, I think is a stock you definitely should have on your watch list.
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