1DDOG trade ideas
DDOG Base Breakout Imminent?DDOG was a monster coming out of the COVID lows, but has since been basically trading sideways for months. This wide base has the potential to be quite explosive. $112 has proven to be a key level. Watch for a break above with heavy volume to confirm the next leg higher. I'm bullish on this name and have a starter position. Will add if/when the stock can take out $112. Earnings on 02/11
DDOG move into EarningsDDOG is pretty much a stock that runs independent to the overall market. At times it can be manipulated, and vast amount of insider selling happens often.
One thing I have noticed with the stock when it comes to insider selling, it is constant but can be somewhat deciphered when looking into the SEC form 4 filings.
Most of the insiders use an algorithm based selling strategy. They decide how many shares they want to sell that day and the algorithm triggers trades throughout the trading day.
If you look at the filed form 4's, when the algorithm does not trigger enough trades to sell all of the requested shares, it has traditionally meant that the algorithm isn't triggering many strongly sold areas of resistance. Indicating that the stock is showing strength and is likely but not guaranteed to continue to increase in price in the following days.
Another thing to look for is amount and timing of the insider selling.
-for instance the CFO Agarwal Amit usually sells his shares on Wednesday's, usually second Wednesday of the month in the amount of 22,500 shares. In the past, when he reports selling shares on a day other than Wednesday it usually indicates an upcoming volatility of share price. If he sells more than his 22,500, it may show that insiders are looking to take some additional profit while the stock price is nearing anticipated highs.
-additionally the CEO and CTO normally sell their shares the first week of each month, in the same manner.
All time highs have also had the tendency to be hit on a Tuesday leading into a Wednesday sell-off.
I would be surprised if DDOG doesn't make a run to challenge upper $90's in the near future. A rejection of a bounce back leaves the stock with room to trail down into the low 70's and potentially further into the mid 60's
Update on DDOG: should trade up into earningsI reconfigured the parallel channel and if it stays along the median it could hit $123 by earnings.
RSI showing it is not overbought and MACD signaling buy.
Looks like there is a path back to contend with previous resistance at $118.
This was nothing but a healthy market-wide sell-off/correction, mainly in technology, that brought this down. Fundamentals are still intact.
There was a recent bullish cross (annotated on the chart with a note) and Moving averages have maintained separation and strength since then on the 4H chart despite the pressure release.
Whether they break-out on earnings; it's too soon to tell, but it definitely looks set-up to trade up to that point so it could be a good short-term play.
I will have to come back and reanalyze when there are more whisper numbers on the street for earnings. Will also check on similar software/tech stocks that report and see how they react upon earnings as a gauge for how DDOG should react.
DDOG, Time To Buy?Hello fellow traders and investors, DDOG has pulled back to the trendline that serves as a support and previously has always reversed, if DDOG makes a full recovery it offers a 13% ROI.
Technicals:
The Macd is oversold
The EMA's indicate that DDOG is still in a downtrend
DDOG is testing the trendline that acts as a support
When To Buy:
When the Macd crosses its EMA
When the EMA's crossover
I hope you enjoyed the quick analysis and much more to come!
$DDOG Looking for Long Entry$DDOG Beat on earnings and revenue on Feb 11. However, they guided slightly lower earnings than expected going forward with better than expected revenue, I like how this dipped right down to my support line (nothing too magical about that) and went right back up. I'm hoping for a little consolidation in the next few trading days. Either way, if we get some good up volume in the next few days / weeks, I''ll be looking for a long entry. All TBD. Ideas, not investing / trading advice.
According to Earnings Whispers:
Datadog Inc Cl A (DDOG) reported 4th Quarter December 2020 earnings of $0.06 per share on revenue of $177.5 million. The consensus earnings estimate was $0.02 per share on revenue of $163.3 million. The Earnings Whisper number was $0.05 per share. Revenue grew 56.2% on a year-over-year basis.
The company said it expects first quarter earnings of $0.02 to $0.03 per share on revenue of $185.0 million to $187.0 million and 2021 earnings of $0.10 to $0.14 per share on revenue of $825.0 million to $835.0 million. The current consensus estimate is earnings of $0.04 on revenue of $180.16 million for the quarter ending March 31, 2021 and earnings of $0.19 per share on revenue of $803.83 million for the year ending December 31, 2021.
Symmetrical TriangleDDOG has broken up from a S triangle and returned back to a tad below break out level, used it as a springboard and closed above long entry level. There is a level of support at bottom of the candle tail.
Symmetrical triangles are often a slow down time for price and price consolidates inside. The pattern consists of 2 trendlines that slope in opposite directions and converge at the endpoints. The pattern needs 5 touches minimum, 2 to one trendline and 3 to the other and can enter the triangle from any direction. Volume usually levels off or decreases while price is inside, but a break out of the trendlines with heavy volume performs the best. I do not see super heavy volume when DDOG broke the triangle. The heavier volume days were when DDOG hit the bottom trendline of the triangle..
A S Triangle can break up or down and is considered a neutral pattern until break out occurs.
Not a recommendation
DDOGDDOG 1-3 week horizon
Reward Potential 13% - 21% | Risk 5.5%
DDOG has been on a bullish channel for the past 2-3 months (green) however the last month or two, it seems to have created a new more aggressive bullish channel (blue). Key level to break around 124 area, just above the original bull channel (green) upper boundary, once this level breaks new blue channel is confirmed.
My buy zone is between 110-104.89 area which happens to be around 61.8% fib level, 107.78 support, bottom boundary of new bull channel (blue) forming, and around 50ema (previous swing low bounced off 50ema) . We have multiple confluence of indicators pointing to the same direction. Stop loss just bellow support2 at 101.82 area. Target1 121.42 (13%) and target2 130.44(21%) .
Disclaimer
I am not a registered investment advisor and do not offer investment advice and recommendation. All my post is not a recommendation, advise nor a suggestion and should not be used as a replacement for investment advice from a qualified licensed professional. All my post is for, information and entrainment purposes only. You, the reader, bear full responsibility for your own investment and trade decisions and should seek the advice of a qualified securities professional before making any investment or trade.
Update on Datadog. DDOG continues on trendDDOG is continuing along the trend lines that show that by earnings it could hit anywhere from 131 to 156.
If it holds along the median of the parallel trend lines then it could hit $144.
I would suggest buying stock for the long-term. Lately, earnings have been "sell the news" events no matter how good the news is. Only buy calls if you are entirely confident that it will break-out further on earnings.
DDOG should break-out on earningsI am anticipating DDOG to reverse the trend of having more negative reactions to earnings than positive. If they beat earnings and give good guidance, I see no reason why it would not reach new all-time highs.
It has reached this level before and this earnings event gives the perfect catalyst for a break-out past the resistance. This is an underappreciated software play.
DDOG price target: $150. A potential move from earnings could bring it to $125.
I would suggest playing this through calls or call spreads to control the amount you are risking. You could go long the stock to beef up your software exposure if you are lacking in that area because diversification is an investor's best friend. Calls and call spreads are a good way to dip your toes in stock without risking too much capital in comparison to the overall share price.
DDOG - hitting the triangle doggy style :)They have had an amazing run since going public. They are a great company and just broke out late day from their triangle right as earnings reports Feb 11th. Personally I think they have one more bounce before the big one. Of course they have to beat on earnings and even then you never know.... GL!
