Is ReDDiT Ready to Launch? Decoding the Waves

BATS:RDDT   Reddit
Reddit has deceived the IPO buyers but the chart might be hinting at a turnaround.

Elliott Wave theory suggests a possible 5-wave downtrend is ending. The current rise could be a wave 1 up before the real rise.

Keep an eye on $47.50! If price breaks above this resistance level, things could get bullish, with a potential reach towards $58-$60 at first with a new high potential afterwards.

Not so fast though! If the price stays below $47.50, the downtrend might not be over and I shall consider this move as a counter trend rise and try to short it as we could see a drop to $38 or even lower if we see an extended fifth which could happen if the rest of the market starts to accelerate to the downside.

How to trade the bullish view: If price breaks above $47.50, I will use a consolidation or pullback to buy. This consolidation would indicate buying pressure after the breakout and offer an entry opportunity. Simply put, I shall wait for a wave 2.

Remember, always maintain a stop-loss, for exemple below key support or the low of the breakout day to manage risk in case price reverses.

What are your thoughts on RDDT? Share your analysis in the comments below!

(Please abstain from comments like 'lol', 'okay' or other comments that bring nothing to the discussion...)
On the smaller time frame we can see 3 waves up for now. Price reversed exactly at the 78.6% retracement level of wave (v), without reaching the wave 1A, 161.8% Fib projection level.
That makes it a good short setup for me with a potential Risk/Reward ratio of a bit more than 6 if going for the low 41.7$ low.

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