Nov. 21, 2021
My Trade Plan:
- Close half at stop 1: $184
- Close remaining at stop 2: $180
- Exit part of trade at target 1: $200
- Exit part or remainder of trade at target 2: $210
DDOG Datadog Inc. (DDOG) - Bullseye Pick of the Week
Original Alert went out on November 21, 2021.
Datadog Inc. (DDOG) is a bright spot in the tech sector right now. After strong earnings, the stock has held up well and consolidated around the $190 area for 2 weeks now. I think it is just a matter of time before it eclipses the $200 level.
My bet is that DDOG has a quick move up above $200 this coming week, or it will begin to break down. I want to keep a couple of stops on this trade. The first will be a break below $184, where I plan to stop out of half of my trade.
The reason is that this is just below the recent 2-week consolidation I just mentioned above. The next stop would be under $180, which I think would signal a breakdown in the trend.
Now, there could be some quick spikes down and right back up, so I will be cautious of being “whipsawed” and forced out of the trade at the bottom.