DDOG H&S Pattern Forming- Next support?

22 juil. 2020

DDOG has been on a tear for some time. It's found resistance at the $99 level and it now looks like it's forming a Head and Shoulders pattern. RSI has been falling creating a price divergence, with price continuing to rise so a drop was expected. MACD has been showing less speed, a lazy sluggish move sideways. I happen to own shares in the 30's so I'm holding for the next base to form. Major support will come between $81 and $76- right around the 50d ma. The 21d ema couldn't hold it and won't hold it here. if it breaks the 50d next support is scary; an unfilled gap at $60. Watch RSI to hold trend at 52 for reversal.
There is hope an hourly gap at $81 might hold but the beating IT software companies have taken, I'm expecting hard supports to allow new strength.

6 août 2020

Note

Looking at the weekly chart, DDOG might be find support in a Bear Candle Channel. This is not by any means a proven strategy, but I have found that with large bear candles can create channels of rest.
MACD is looking to roll over and RSI has broken through OB 70.
The good news is the 10W coudl be a very good resting place and coincidentally, it equals the bottom of the bear candle channel.
If the 10W is broken look for support at the $70 range, the weekly Doji and 21W.
I'm holding long as I have a good entry.