Watch These Datadog Value Ranges After Inventory Soars on Information of S&P 500 Inclusion

Datadog (DDOG) shares stay in focus after hovering to a six-month excessive on the finish of final week on information that the cloud monitoring firm shall be becoming a member of the S&P 500 on July 9.

Sometimes, shares that get included into benchmarks like the big cap S&P 500 obtain a lift as they develop into seen to new buyers and get added to index-tracking exchange-traded funds (ETFs).

Datadog shares misplaced greater than half their worth between December and April as uncertainty over the Trump administration’s tariffs and downbeat earnings projections from the compamy pummeled the inventory. Nevertheless, they’ve practically doubled from their 2025 low and are up about 9% for the reason that begin of the yr, boosted by renewed investor urge for food for cloud and AI shares. The inventory jumped 15% to round $155 on Thursday, forward of the July 4th break.

Beneath, we take a more in-depth take a look at Datadog’s chart and use technical evaluation to level out value ranges that buyers will probably be watching.

Bullish Rising Wedge Breakout

After bottoming in early April, Datadog shares traded larger inside a rising wedge earlier than staging a decisive breakout in Thursday’s buying and selling session. Importantly, the leap occurred on the very best every day quantity for the reason that inventory went public in September 2019, signaling robust shopping for conviction from bigger market contributors.

Whereas the relative power index confirms bullish value momentum, it additionally flashes excessive overbought circumstances, probably elevating the opportunity of short-term profit-taking.

Let’s establish two key overhead areas on Datadog’s chart to look at and find essential assist ranges price monitoring.

Key Overhead Areas to Watch

Observe-through shopping for this week may see the shares climb to the $170 space. The worth could run into promoting strain on this location close to the outstanding December swing excessive.

Buyers can mission an upside goal above this space through the use of the bars sample device. When making use of the evaluation, we take the inventory’s pattern larger that adopted an earlier breakaway hole on the chart in November 2023 and reposition it from the low of Thursday’s hole. This initiatives a bullish goal of round $205, about 32% above final week’s closing value.

Essential Help Ranges Price Monitoring

Revenue-taking within the inventory may see a retracement towards $135. This space would probably entice robust assist close to a trendline that connects the highest of the rising wedge with a sequence of value motion on the chart stretching again to January final yr.

A deeper correction may set off a decline to decrease assist round $125. Datadog shares discover a confluence of assist on this area close to the 200-day shifting common and a horizontal line that hyperlinks a variety of corresponding buying and selling exercise on the chart between December 2023 and June this yr.

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As of the date this text was written, the creator doesn’t personal any of the above securities.