Datadog Stock Rises 3.26% As Technicals Signal Bullish Continuation

Datadog (DDOG) advanced 3.26% in the most recent session, closing at $136.08 on increased volume. This technical analysis examines the stock’s behavior across multiple indicators to assess trend dynamics and potential forward paths.
Candlestick Theory
Recent price action reveals a bullish reversal pattern forming. The session of August 28th showed a long green candle (+7.01%) with notably high volume, establishing support near $126.25. Subsequent sessions consolidated between $126.31 and $136.25, culminating in a September 5th bullish engulfing candle closing near its high. Resistance is evident at $142.50 (August 29th high), while critical support lies at the $126.25-$128 range validated by multiple tests.
Moving Average Theory
The 50-day moving average slopes upward near $130, reinforcing the immediate uptrend. More significantly, the stock trades robustly above its rising 100-day and 200-day averages, positioned near $120 and $115 respectively. This alignment—with shorter averages above longer ones—confirms a sustained bullish structure. The August 26th bounce precisely off the 50-day MA underscores its role as dynamic support.
MACD & KDJ Indicators
MACD’s histogram recently turned positive, with both the MACD and signal lines crossing upward—a momentum affirmation after the late-August rally. KDJ displays a bullish configuration: the %K line (76) and %D line (65) crossed upward from oversold territory (<30) in late August. Current KDJ levels suggest room for further upside before overbought thresholds. No bearish divergence is observed.
Bollinger Bands
Volatility expansion occurred during the August 28th breakout, with price briefly touching the upper band. Subsequent contraction reflects consolidation, with price now hovering near the 20-period midline ($132.50). The squeeze preceding the late-August surge resolved bullishly, indicating renewed upside potential upon band expansion. Upper band resistance is tracked at $138.
Volume-Price Relationship
Bullish volume confirmation is evident: the August 28th 7.01% surge occurred on volume over 150% of the 30-day average. Recent gains, including September 5th’s 3.26% rise, were supported by above-average volume, validating accumulation. Distribution signs are absent, though low-volume pullbacks (e.g., September 4th) signaled temporary indecision rather than structural weakness.
Relative Strength Index (RSI)
The 14-day RSI reads 58, reflecting balanced momentum after recovering from oversold levels in August. While approaching the neutral-upper zone, it remains shy of overbought caution levels (>70). The RSI’s higher low in late August against price’s flat base signaled positive divergence, foreshadowing the current rebound.
Fibonacci Retracement
Applying Fibonacci levels to the dominant uptrend from the April low ($81.63) to the July high ($143.41), the 23.6% retracement ($133.50) aligns with recent resistance. Current trading above this threshold suggests resilience, with the 38.2% level ($123.80) acting as major support. A sustained break above $133.50 may catalyze momentum toward the July peak.
Confluence & Conclusion
Significant confluence exists between the 50-day MA support ($130), bullish candlestick patterns, and Fibonacci’s 23.6% level ($133.50). Momentum oscillators (MACD, KDJ, RSI) uniformly indicate strengthening upside momentum without immediate overbought risks. Volume validates bullish breakouts, while Bollinger Band positioning shows consolidation within an uptrend. Key resistance is established at $142.50 (August high). A decisive close above $138 could signal continuation toward $143.41, whereas failure to hold $130 might signal consolidation toward the 38.2% Fib ($123.80). The bias leans bullish, supported by the multi-timeframe moving average alignment and absence of bearish divergences.