Datadog Rises 3.41% as Technicals Signal Bullish Breakout Above $124

Datadog (DDOG) advanced 3.41% in the most recent session, closing at $122.68 after trading between $120 and $123.69. The following technical analysis evaluates key market dynamics based on historical price data.
Candlestick Theory
Recent price action shows consolidation near the $123.70 resistance level, tested three times in early June 2025. A bullish piercing line formed on June 12 (white candle engulfing the prior red candle’s body), indicating potential upside momentum. Support is firm around $118.00 (tested June 11) and reinforced by the May swing low of $116.12. A sustained break above $123.80 would signal bullish resolution, while failure risks retesting $118 support.
Moving Average Theory
The 50-day moving average ($118.50) crossed above the 100-day ($112.80) and 200-day ($108.40) averages in mid-May, confirming a golden cross. Current price trades above all three averages, reflecting an established bullish trend. The ascending 50-day MA provides dynamic support, with the positively sloped 200-day MA underscoring long-term strength.
MACD & KDJ Indicators
MACD registers a bullish crossover above its signal line, with the histogram expanding positively – indicative of strengthening momentum. KDJ (using standard 9-day settings) shows the %K line at 75 and %D at 68, approaching overbought territory but maintaining upward trajectory. While not yet extreme, both oscillators suggest near-term upside potential may face friction above the $123.70 resistance zone.
Bollinger Bands
Bands narrowed significantly in late May, signaling reduced volatility before the current breakout. Price now trades near the upper band ($124.20), which may act as resistance. Band expansion supports continued directional momentum, though proximity to the upper band suggests short-term consolidation risks. The midline ($119.80) aligns with key support.
Volume-Price Relationship
Volume surged during the April advance from $85.74 lows and the mid-May golden cross, validating trend initiation. Recent gains above $120 occurred on above-average volume, including the June 12 rally, confirming buyer conviction. Declining volume during minor pullbacks (e.g., June 11) indicates limited selling pressure, reinforcing structural support.
Relative Strength Index (RSI)
The 14-day RSI reads 62, holding below overbought thresholds but showing upward momentum. This aligns with MACD/KDJ signals that upside exists but may encounter resistance near $124. Notably, RSI has not exceeded 70 since February’s peak, preventing severely overextended conditions. Divergence is absent, supporting trend continuity.
Fibonacci Retracement
Using the February 13 peak ($136.71) and April 8 trough ($85.74), key retracement levels emerge: 23.6% ($103.90), 38.2% ($112.20), and 61.8% ($124.80). Current price trades between the 61.8% ($124.80) and 78.6% ($129.20) levels. The 61.8% retracement aligns with the multi-test resistance at $123.70-$124.00, creating a technical confluence zone. A decisive close above $124.80 would target $129.20 next.
Confluence & Divergence Observations
Bullish confluence appears at $124.00, where Fibonacci resistance, Bollinger upper band, and multi-test horizontal resistance converge. Volume supports upside continuation, with moving averages providing stacked support. No material divergences exist between price and oscillators. Caution is warranted at current levels due to overbought KDJ readings and the double resistance at $123.70-$124.80, which may trigger short-term consolidation. However, the weight of evidence suggests bullish resolution above $124.80 is probable, potentially extending toward $129.20.