DDOG

DDOGis currently in a long-term negative trend, with monthly and weekly candles showing 2D movement (i.e., dropping below the previous period's low), indicating overall seller dominance. However, in the short term, the daily chart shows signs of correction with positive movement (2U), creating a conflict with the broader trends.

On the daily chart, it is evident that the decline has halted around the gap that was previously opened, and it has even closed. This indicates a strong support level in the $136-$138 range, which could serve as a potential turning point in the short term.

To confirm a more significant trend reversal, a clear breakout above the $140 level is required, signaling a shift back to positive momentum even in the longer time frames. As long as the stock remains below these levels, the risk of continued negative pressure remains high.

At this stage, the recommended strategy is to wait for clear confirmation of a trend reversal in the longer time frames while closely monitoring the behavior around the key levels and the recently closed gap.