Datadog (DDOG) Elliott Wave: Wave (5) targets 278 and 373

Datadog (NASDAQ: DDOG) continues to display a strong bullish Elliott Wave structure after completing a lengthy corrective phase that lasted from late 2021 into early 2026. Following its all-time high, the stock entered a complex W-X-Y corrective pattern, eventually completing wave II near the 98.01 invalidation level. The strong reaction from that area confirmed the end of the correction and signaled the beginning of a new impulsive cycle. Since the February 2026 low, Datadog has rallied sharply, producing a clear impulsive five-wave structure at lower degrees. The recent advance confirms that wave III is in progress, which is typically the strongest and most dynamic phase of an Elliott Wave sequence.

The chart indicates that wave (3) has already completed after a strong vertical advance. More importantly, the recent pullback has also completed wave (4), holding well above the wave (1) peak and respecting Elliott Wave rules. The stock has now turned higher again, suggesting wave (5) is already underway. This recovery reinforces the bullish outlook and indicates buyers continue to control the larger trend. As long as the price remains above the 98.01 invalidation level, the preferred count continues to favor higher prices.

Wave (5) outlook and long-term targets

We are currently trading around the 100% Fibonacci extension of wave I at 268.12, suggesting that black wave ((1)) is becoming mature. However, the internal Elliott Wave structure still appears incomplete,indicating there could be one final push higher within wave (5) before black wave ((1)) finishes. A break above 278.71 would provide additional confirmation that wave ((1)) has completed. Once that happens, we expect a corrective pullback in black wave ((2)), which should unfold in 3, 7, or 11 swings and offer another buying opportunity for investors. After wave ((2)) completes, the larger bullish trend is expected to resume, targeting at least the 1.618 Fibonacci extension of wave I near 373.56, with the potential for further upside as the higher-degree impulsive sequence continues to unfold.

Summary

Datadog has completed both its larger wave II correction and the recent wave (4) pullback, confirming that wave (5) is now in progress. The stock remains firmly bullish while holding above 98.01, with upside targets at 268.12 and potentially 373.56 over the longer term. Any corrective pullbacks after wave ((1)) completes should continue to attract buyers within the ongoing bullish trend.