DDOG – Datadog Inc.
DDOG – Datadog Inc.
Date: 28 May 2026
Sector: Technology Services / Package Software
Exchange: NASDAQ
TradingView link: https://www.tradingview.com/x/HgUqNVRo/
Datadog is another stock sitting firmly within the technology and software infrastructure theme that continues to dominate large areas of the market. What makes this one particularly interesting, though, is that unlike some of the mega-cap names, this stock spent several years effectively digesting prior gains before now attempting to break free to reach fresh all-time highs.
That type of long-duration consolidation can often create powerful moves once price finally escapes the range, especially when accompanied by strong earnings and volume confirmation, both of which we have here.
Now onto the technicals.
The stock initially floated around $37 back in September 2019.
Looking at the chart from a monthly perspective, after the IPO, the stock initially moved sideways until roughly April 2020, then accelerated rapidly higher.
That move produced a classic sequence of higher highs and higher lows before eventually peaking at the very top of the large pink box around the $298 level.
Following that move, the stock entered a prolonged sideways consolidation period.
Between November 2021 and May 2026, the price broadly oscillated between approximately $59 and $201.
Importantly, this most recent breakout attempt is now the third attempt at breaking above the top of the pink box.
The two prior attempts effectively spiked higher before quickly fading back into the range. This time, though, looks materially different.
Not only are we seeing significantly stronger volume accompanying the breakout, but price also appears likely to close the monthly candle above the pink box rather than merely spiking through it intramonth.
Of course, there are still two trading sessions left in the month, so things can still change, but on the balance of probabilities, this currently looks like a genuine breakout attempt rather than another failed move.
When we zoom down to the daily timeframe, the earnings release becomes particularly important.
The company surprised to the upside by approximately 18%, which was very well received by the market.
Price immediately gapped higher on the news and, importantly, never attempted to close the gap afterwards.
In fact, subsequent price action suggests the market has very little interest in filling that gap at the moment.
Instead, buyers continued to step in, driving prices higher.
Looking at the 4H timeframe, we can see that after the earnings gap formed, the price initially accelerated rapidly higher toward the top of the pink box.
We briefly dipped back below the breakout area, but only marginally.
After that, price reclaimed the breakout zone, consolidated above it for approximately two trading sessions, and what had previously acted as resistance began to behave as support.
Since then, the stock has continued pushing higher.
From an execution perspective, the setup now appears to be a potential continuation trade.
At present, both the daily and 4H candles are grey, which may provide an opportunity for a continuation entry should momentum resume.
Entry trigger:
Next 4H blue candle
Continuation move from the current grey candle setup
Initial stop loss:
Last 4H swing low at approximately $207.24
Multi-timeframe correlation
3M: Blue candle (recently transitioned from yellow to blue)
1M: Blue candle
1W: Blue candle
1D: Grey candle
4H: Grey candle
When should I tighten the stop-loss?:
Last 4H swing low
Tighten progressively if higher lows continue forming above the breakout area
When do I add to the position?:
Next confirmed 4H pullback
Break and retest of the breakout area as support
Fresh blue continuation candle after shallow consolidation
Only add if the higher timeframe structure remains intact
Potential target range (daily):
None currently
Activated price targets: None
Am I in this trade: No
Current return (R multiple):
0R