Will Datadog Inc Cl A breakout?

Our stock screener has spotted Datadog Inc Cl A (NASDAQ:DDOG) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an eye on NASDAQ:DDOG.

What is the technical picture of NASDAQ:DDOG telling us.

Every day ChartMill assigns a Technical Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple technical indicators and properties.

Taking everything into account, DDOG scores 7 out of 10 in our technical rating. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, DDOG is only an average performer.

• The long term trend is positive and the short term trend is neutral. The long term trend gets the benefit of the doubt for now.
• DDOG is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.
• When compared to the yearly performance of all other stocks, DDOG outperforms 67% of them, which is more or less in line with the market.
• DDOG is part of the Software industry. There are 289 other stocks in this industry, DDOG did better than 57% of them.
• DDOG is currently trading in the middle of its 52 week range. The S&P500 Index however is currently trading near new highs, so DDOG is lagging the market.

How does the Setup look for NASDAQ:DDOG

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NASDAQ:DDOG scores a 8 out of 10:

Besides having an excellent technical rating, DDOG also presents a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. There is a support zone below the current price at 104.64, a stop order could be placed below this zone. We notice that large players showed an interest for DDOG in the last couple of days, which is a good sign.

How to trade NASDAQ:DDOG?

A breakout could materialize when the stock breaks out to new highs above the current consolidation zone. One could wait for this to happen and buy when this happens. A stop loss could be placed below the consolidation zone.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

Every day, new breakout setups can be found on ChartMill in our Breakout analyzer.