$DDOG - Consolidating After Breaking a 9-Month Base
$Datadog(DDOG)$ - Consolidating After Breaking a 9-Month Base
DataDog is part of the high-performing $SPDR S&P Software & Services ETF(XSW)$ group, ranking among the top in 1-month relative strength (RS). The 9-month base breakout from Nov 19 to Dec 6 peak has delivered a remarkable +30% price gain in under 3 weeks for a $50B market cap stock with a 3.5% ADR.
Sales have shown consistently stable growth, averaging +25% YoY over the past five quarters. That equates to +100% annual sales growth. Upcoming estimate projects a more modest sales growth of +21%.
DDOG has already pulled back and found support at its rising 10- and 20-day MAs, with signs of price consolidation. A few more days of flat, tightened action could bring the current 50-day MA extension below 4x ATR%, presenting a more favorable risk-reward setup. Historically, DDOG tends to pull back after reaching an 8x ATR% extension from the 50-day MA.
Leading names in the group on 1-month RS also includes $Trade Desk Inc.(TTD)$ $Snowflake(SNOW)$ $CrowdStrike Holdings, Inc.(CRWD)$ $HubSpot(HUBS)$ $Palantir Technologies Inc.(PLTR)$ $Roblox Corporation(RBLX)$ $Microsoft(MSFT)$
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