Watch These Datadog Price Levels After Stock Soars on News of S&P 500 Inclusion

Datadog (DDOG) shares remain in focus after soaring to a six-month high at the end of last week on news that the cloud monitoring company will be joining the S&P 500 on July 9.

Typically, stocks that get included into benchmarks like the large cap S&P 500 receive a boost as they become visible to new investors and get added to index-tracking exchange-traded funds (ETFs).

Datadog shares lost more than half their value between December and April as uncertainty over the Trump administration’s tariffs and downbeat earnings projections from the compamy pummeled the stock. However, they have nearly doubled from their 2025 low and are up about 9% since the start of the year, boosted by renewed investor appetite for cloud and AI stocks. The stock jumped 15% to around $155 on Thursday, ahead of the July 4th break.

Below, we take a closer look at Datadog’s chart and use technical analysis to point out price levels that investors will likely be watching.

Bullish Rising Wedge Breakout

After bottoming in early April, Datadog shares traded higher within a rising wedge before staging a decisive breakout in Thursday’s trading session. Importantly, the jump occurred on the highest daily volume since the stock went public in September 2019, signaling strong buying conviction from larger market participants.

While the relative strength index confirms bullish price momentum, it also flashes extreme overbought conditions, potentially raising the possibility of short-term profit-taking.

Let’s identify two key overhead areas on Datadog’s chart to watch and locate important support levels worth monitoring.

Key Overhead Areas to Watch

Follow-through buying this week could see the shares climb to the $170 area. The price may run into selling pressure in this location near the prominent December swing high.

Investors can project an upside target above this area by using the bars pattern tool. When applying the analysis, we take the stock’s trend higher that followed an earlier breakaway gap on the chart in November 2023 and reposition it from the low of Thursday’s gap. This projects a bullish target of around $205, about 32% above last week’s closing price.

Important Support Levels Worth Monitoring

Profit-taking in the stock could see a retracement toward $135. This area would likely attract strong support near a trendline that connects the top of the rising wedge with a series of price action on the chart stretching back to January last year.

A deeper correction could trigger a decline to lower support around $125. Datadog shares find a confluence of support in this region near the 200-day moving average and a horizontal line that links a range of corresponding trading activity on the chart between December 2023 and June this year.

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As of the date this article was written, the author does not own any of the above securities.