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DDOG stock price is down by 1.06% in the last trading session and is currently trading at $93.69. - 2
Datadog Inc.’s stock price (NYSE: DDOG) experienced an earnings effect leading to a gap down open of nearly 20%.
DDOG stock price bottomed out in May 2023 and made an upward thrust leading to a surge of more than 75% in the next two months. The stock price made one-way flow breaking above the previous swing highs thus shifting its overall trend to an uptrend.
Recently, the price consolidated at the top before the earnings and formed a bearish price action at the top. The earnings led the stock to open a huge gap down of nearly 20%.
The company disclosed earnings on the 8th of August which topped the expectations of Wall Street. The revenue came out to be $509.46 Million, 7.29 Million more than expectations and the earnings beat the analyst’s estimates by 26%.
DDOG stock option-chain analysis states that the current implied volatility in the market is 47.3% with an increment of 0.73% in the last trading session. The at-the-money strike price has 416 open contracts on the put side and 249 open contracts on the call side indicating the dominance of buyers at the current level. The PUT/CALL ratio is 1.27 indicating that Buyers dominating at the moment as per the data.
DDOG Stock Price Forming A Channel Pattern On The 4 Hour Chart
The DDOG stock price currently trades at $93.69 and inclining slowly to fill the gap created due to the gap down opening on the earnings day.
The short-term outlook for the stock is neutral to bullish until the price remains in the channel and the price may try to fill the gap created by inclining upwards.
However, the 20% gap down opening of the price may be a concern for the buyers as the price has lost a very important support of $100 which may turn into resistance and sellers might seek an opportunity to sell off and the price may decline.
The long-term trend still stands on the bullish side as the price is trading above the previous breakout zone and above the 200 EMA.
The EMAs Showing A Golden Crossover On the Daily Chart
The daily DDOG stock price chart shows that the price is trading above 200 EMA indicating a strong uptrend in the long term. The overall Technical Opinion rating including RSI and MACD is signaling a 40% buy with the weakest short-term outlook on maintaining the current direction.
Conclusion
DDOG stock price prediction concludes that the stock price soared 75% in two months after bottoming out in May 2023. It then dropped 20% after earnings despite beating expectations. The stock is now trading at $93.69 and trying to fill the gap. The short-term outlook is neutral to bullish as long as the price stays in the channel. The long-term trend is still bullish as the price is above the previous breakout zone and the 200 EMA. However, the $100 level may act as resistance and trigger selling pressure.
Technical Levels
- Support levels: $87.40 and $83.02.
- Resistance levels: $100.29 and $105.96.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/08/23/ddog-stock-price-prediction-have-earnings-reversed-the-trend/