Datadog Jumps 4.13% To $130 On Bullish Technicals And Heavy Volume

Candlestick Theory
Datadog's recent price action exhibits a robust bullish sequence, culminating in a 4.13% surge to $130 on June 18, 2025. This session formed a long green candle closing near its high ($130.49), reinforcing upward momentum after two prior bullish days (+7.93% over three sessions). The pattern resembles a "Three White Soldiers" formation, suggesting sustained buying pressure. Key resistance is evident at $130.50 (June 18 high), with a breach potentially targeting the February 2025 peak near $137. Support holds near $119–$120, aligning with early June consolidation lows, while the psychological $125 level may offer secondary support.
Moving Average Theory
The moving average configuration underscores a bullish trend. The 50-day MA (approximated at $122–$123) and 100-day MA (near $118–$119) both slope upward, reflecting strengthening intermediate momentum. Crucially, the price trades approximately 6% above the 200-day MA (est. $114–$115), confirming a long-term uptrend. The sustained premium above all three key MAs signals robust bullish alignment, with the 50-day poised to cross above the 100-day—a potential "Golden Cross" that may amplify buying interest.
MACD & KDJ Indicators
MACD metrics demonstrate bullish momentum, with the MACD line crossing above its signal line in late May and widening since. This divergence indicates accelerating upward force. However, the KDJ oscillator reveals a short-term overbought condition, with the %K line (90) and %D line (85) exceeding the 80 threshold. While MACD supports continued upside, KDJ’s extreme readings suggest possible consolidation. This divergence between MACD’s trend strength and KDJ’s overextension merits monitoring for a near-term pullback.
Bollinger Bands
Volatility expanded sharply during June’s rally, with the upper Bollinger Band (20-day MA +2σ) stretching toward $128–$129. The price closed above the upper band on June 18, a rare event occurring in under 5% of trading sessions historically. Such deviations often precede mean reversion. Although this signals strong bullish conviction, the breach increases the probability of a tactical retracement to retest the 20-day MA (near $122) as support before further upside.
Volume-Price Relationship
Volume dynamics validate the bullish breakout. Trading activity surged 108% from June 16 (3.3M shares) to June 18 (6.86M shares), accompanying a 7.93% three-day advance—classic accumulation behavior. The volume-to-price confirmation eclipses the prior week’s inconsistencies (e.g., June 11’s 5.76M shares on a down day), reinforcing the sustainability of the current move. Notably, the June 18 volume ranked in the top 10% of daily activity year-to-date.
Relative Strength Index (RSI)
The 14-day RSI closed at 75 on June 18, breaching the overbought threshold (70) for the first time since February 2025. Historically, Datadog’s RSI has peaked near 80–85 before reversals. While this warns of short-term exhaustion, context is critical: sustained RSI readings >70 occurred during powerful uptrends in Q4 2024, implying that overbought conditions can persist during strong trends. A retreat below 70 would signal cooling momentum.
Fibonacci Retracement
Applying Fibonacci to the April–June swing (low: $94.90 on April 24; high: $130.49 on June 18), key retracement levels emerge at $120.50 (38.2%), $116.20 (50%), and $111.90 (61.8%). The price recently reclaimed the 78.6% level ($122.90), transforming it into support. The 100% projection of this rally reaches $130.49, which coincides exactly with June 18’s peak—a confluence that may trigger profit-taking. Bulls now target the 127.2% extension ($137.50), aligning with February’s resistance zone.
Confluence and Divergence Synthesis
Strong confluence appears in the $122–$124 zone, where the 50-day MA, 78.6% Fibonacci retracement, and the Bollinger Mid-Band converge. This makes it a high-probability support area. Meanwhile, KDJ overbought signals diverge from MACD’s bullish momentum—a tension reflecting near-term exhaustion risks within a structurally intact uptrend. Traders should monitor the $130.50 resistance; a decisive breakout with volume >6M shares could propel prices toward $137.50, while failure there may trigger a retreat to $125–$126 before renewed advances.