Morning Trend | Datadog experiences a sharp decline in volume, is a rebound window approaching or is it a continuation of the downward momentum?
Datadog (DDOG.US) experienced a significant withdrawal of funds during trading yesterday, with short-term selling pressure clearly amplified, leaving many tech "high elasticity" investors feeling cold. The stock fell sharply in the morning, testing key support levels multiple times, but many in the communities like ROYALFLUSH INFO and Xueqiu discussed after hours: Is this wave of selling a washout, and is a rebound window coming? The short-term main force did not "step on the gas" to accelerate the decline, and trading volume actually decreased while prices fell in the latter half. This indirectly indicates that the market's reluctance to sell and panic selling is not as significant as many imagine, and the divergence between bulls and bears is still intensifying—in other words, the chips are being tossed back and forth. Currently, the overall atmosphere in the cloud service and SaaS sectors is relatively weak, with no substantial positive catalysts for the industry, and institutional inflows are quite passive. However, it is worth noting that some technical indicators are nearing extreme oversold areas, and many short-term speculative funds and "left-side warriors" are starting to watch for rebounds. Traders in the quantitative community analyze: as long as the U.S. tech sector does not collectively collapse, or if there are some contracts or policies that exceed expectations, stocks like DDOG can bounce back in a flash. Of course, the current overall sentiment is suppressed, and short-term trading is most afraid of being further sold off. If the funds fluctuate during trading and key support levels are actively ignited, a weak-to-strong reversal is expected; but if the market continues to pull back, it cannot be ruled out that there will be an inertia sell-off and a re-test of the lows. There is potential for a rebound, but it depends on whether the overall sector gives it a chance. It is recommended to closely monitor the main force's movements during trading and the heat of U.S. tech stocks; once an opportunity arises, do not hesitate, as the rebound window may "flash" at any moment
Technical Forecast·
