Thanks SD for sending a note to look at $DDOG.
Either I’ve heard this name before or, I just think it is cool….Datadog.
Haven’t been watching the stock trade so let’s breakdown the analysis of it.
At first glance, using the 6 monthly daily chart chart here I didn’t have any immediate warm feelings on it.
Why not?
Well, at first the stock price is trading between it’s 50 day and 200 day EMAs (blue line and red line) and the price is basically rangebound between $80 and $100 for most of the 6 month chart timeframe.
Still, let’s take a look at the longer trend in the 2 year weekly chart here.
Well now!
This actually looks like the price is riding on long-term price support.
A great trade for me is one where I get in near known price support and sell somewhere higher. Lower risk on the entry and the possible gain can be measured by what recent highs in price look like.
For $DDOG, the price around $88 is sitting on that perceived price resistance turned into support trend line in orange on the chart above.
The high of this chart is around $115-120, which is also the high of the 6 month chart.
Now, with the lukewarm 6 month chart feel I’m going to prefer to hang out and be patience.
Once the price breaks the trend line in orange below AND get’s above the 50 day EMA (blue line) then that will be the time to look to start scaling into a new long position.
Cool!
Thx SD, I’m putting this one on my watchlist for scanning.
#teamwork