DDOG H&S Pattern Forming- Next support? 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.
