Datadog Surges 7.23% To $157.36 As Bullish Indicators Align

Candlestick Theory
Analysis of Datadog’s price action reveals a significant bullish reversal pattern on October 1, 2025, where a long green candle (7.23% gain) with high volume broke above prior resistance near $144.50. This was followed by consolidation and a recent breakout above the psychological $155 resistance, closing at $157.36. Key support now resides near $151.50–$152.70 (previous swing high and breakout zone), while resistance emerges at the year-to-date peak of $159.68. The two consecutive green candles culminating the dataset suggest near-term bullish momentum, though a close above $160 is needed to confirm sustainability.
Moving Average Theory
The 50-day moving average (MA) crossed bullishly above the 200-day MA in late August 2025, signaling a long-term trend reversal. Currently, the 50-day MA ($144.50) and 100-day MA ($139.80) slope upward above the 200-day MA ($134.20), confirming a robust uptrend. Price trading above all three MAs reinforces bullish bias. However, the gap between price and the 50-day MA (~8% premium) warrants monitoring for potential mean reversion.
MACD & KDJ Indicators
The MACD histogram shows sustained positive momentum since early September 2025, with the MACD line above the signal line and both trending upward. KDJ readings (K: 78, D: 72) approach overbought territory (>80) but have not yet crossed bearishly, supporting near-term strength. A divergence would emerge if price advances further without KDJ confirming new highs, which isn’t presently observed.
Bollinger Bands
Bands expanded sharply during the October 1 breakout, reflecting volatility surge. Price currently rides the upper band ($158), typically indicative of strong upside momentum. However, this also suggests potential exhaustion if volume diminishes. The 20-period average (basis for bands) slopes upward at $152, aligning with key support. A band contraction from here may precede consolidation.
Volume-Price Relationship
Breakout gains (e.g., October 1: +7.23% on 8.08M shares; October 6: +3.65% on 4.67M shares) saw volume expansion, validating upside conviction. Notably, the July 8, 2025, sell-off (-4.25% on 86.39M shares – outlier volume) marked capitulation, creating a durable low. Recent accumulation near $151–$153 on above-average volume strengthens the support floor.
Relative Strength Index (RSI)
The 14-period RSI reads 68, approaching overbought territory but not yet exceeding the 70 threshold. It has consistently respected the 40–65 range during the uptrend, avoiding extreme readings since June 2025. While this suggests room for further upside, the RSI’s failure to reach oversold (<30) during minor pullbacks underscores underlying strength and reduces reversal immediacy.
Fibonacci Retracement
Applying Fibonacci to the dominant uptrend from the June 18 low ($124.84) to the October 6 high ($159.68) shows critical levels: the 23.6% retracement at $151.55 aligns precisely with recent support, while the 38.2% level at $146.80 served as a reversal zone in September. The $158.50 level (June high) now acts as psychological and technical resistance—a breakout here could target the 161.8% extension near $170.
Confluence and Divergence Synthesis
Strong confluence exists around $151.50–152.70, where Fibonacci, moving averages, volume support, and candlestick structure converge. A breach below $150 would invalidate the bullish structure. No significant divergences currently appear, as MACD, KDJ, and RSI all support the uptrend, though overbought KDJ/RSI readings against stretched Bollinger Bands suggest near-term consolidation risk. Probable near-term resistance at $158.50–160.00 must be overcome for continuation toward new highs.