07 August, 2021

$DDOG – Stage 2 Breakout to New All Time Highs

$DDOG made a new weekly Stage 2 breakout to new all time highs following its earnings results.

I've talked about DDOG many times recently since the failed Stage 4 breakdown attempts, as when a Stage 4 breakdown fails it often reverses strongly into a spring, which is an early buy point in the Wyckoff method, and then continues higher moving back into Stage 1. See Twitter Post for example.

The more recent lower base within the broader structure formed the classic Wyckoff accumulation structure with a Selling Climax (SC) in March, which then had an Automatic Rally (AR) and a Secondary Test (ST), following by an Upthrust Action (UTA) before selling down into a Spring and Test in Phase C of the base structure, which shook out the weak hands and then reversed higher with Sign of Strength (SOS) rally and Backing Up (BU) action.

Point & Figure Horizontal Price Target (Wyckoff method)

The Wyckoff method P&F horizontal count line is 33 columns with a 2 box size by 3 reversal chart. So that gives a projection of 198, which added onto the Spring Low at 70 and the Last Point of Support (LPS) at 102, gives a target range of 268 to 300. Hence a greater than 100% potential Cause from the entire base.

There's also a smaller count from the recent lower right base with a count line of 11 for shorter term targets.

So 11 x 2 x 3 = 66.
=>
Swing low of 70 + 66 = 136
LPS of 88 + 66 = 154

So a short term target range of 136 to 154, which it's almost reached already with a high on the gap up on Wednesday of 135.38.

Institutional Ownership

Charts courtesy of the gurufocus website. Go to: www.gurufocus.com

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