The Long Investor

$DDOG - Earnings just released -

Added 2024-05-07 12:06:30 +0000 UTC

$DDOG is down -10% now post earnings, in spite of a double beat but thanks to StocksNerd, we can see that the FCF has decreased by 4% and again, the market does not like to see cash flows slowing down.

This is likely the cause of the decline.

That being said, the price has broken down out of the wedge but the impulse structure is still in play as we are not in Wave 4 yet, we are still in Wave 3 from our count.

So what we could see is a test of the 200 Day MA at $111, once this holds, $DDOG could move higher as we expect.

Losing the 200 Day MA and then the structure has lost a critical support line and weakness is clear.
So if you are considering adding, wait for support to be confirmed.