Technical Analysis is All About Pattern RecognitionNYSE:RDDT : The Cup-and-Handle and VCP Breakout Setup
RDDT has established a clear "rhythm": after a two-month consolidation, it consistently reclaims the 20-day SMA (Red Line), followed by a volatility contraction phase where the price stops making new lows.
The stock just completed a Cup-and-Handle pattern, forming a 1 to 1.5-month Volatility Contraction Pattern (VCP) before breaking out, signaling that supply has been fully absorbed.
The recent +5.23% move on expanding volume successfully cleared the $240 psychological level, marking a fresh breakout from the consolidation high. This "breakout within a base" confirms that the trend is ready for its next leg higher.
Summary: By reclaiming the SMA 20 and breaking out of the tightest part of the pattern, RDDT is showing a high-probability continuation signal. As always, manage your risk and keep stops below the previous swing low.
Reddit, Inc. Class A
No trades
Market insights
RDDT: Fractal Cup & Handle with a "Cheat" EntryReasoning:
Strong Industry/Sector (Social Media / AI Data Licensing)
Fractal Setup: Cup & Handle visible on both Monthly and Daily charts
Mid Cheat entry: Forming a low-risk pivot within the base
If Labelled a Swing trade(2-6 Week Holds)
Entry: Full position on breakout (See Chart)
Profit Taking: Sell 1/3 at Goal 1
Final Exit: Remainder at Goal 2
If labelled a long term trade (3-12 Month Holds)
Entry: Full position on breakout (See Chart)
Profit Taking: Sell 1/4 to 1/5 at Goal 1
Exit Signal: Close below 20-day EMA (your trend guide) or 50EMA
Why: Strong moves are hard to time at the top, but the 20EMA acts as a reliable trend filter
Note:
Remember: Every long-term investment alert can also be played as a swing trade.
I normally use half the risk that I show here, this is because I am okay re-entering if it fails and it gives a better R/R ratio
RDDT: Massive Monthly Cup & Handle (Long Term)Reasoning:
Strong Industry/Sector (Social Media / AI Data Licensing)
Monthly Cup and Handle (Major long-term structural setup)
Leveraged Option: NASDAQ:RDTL available for amplified exposure
If Labelled a Swing trade(2-6 Week Holds)
Entry: Full position on breakout (See Chart)
Profit Taking: Sell 1/3 at Goal 1
Final Exit: Remainder at Goal 2
If labelled a long term trade (3-12 Month Holds)
Entry: Full position on breakout (See Chart)
Profit Taking: Sell 1/4 to 1/5 at Goal 1
Exit Signal: Close below 20-day EMA (your trend guide) or 50EMA
Why: Strong moves are hard to time at the top, but the 20EMA acts as a reliable trend filter
Note:
Remember: Every long-term investment alert can also be played as a swing trade.
I normally use half the risk that I show here, this is because I am okay re-entering if it fails and it gives a better R/R ratio
$RDDT showing relative strength One of the strong stocks that has defined the market volatility over the past couple weeks. It has formed a nice handle which shows that institution do not want to get out of this stock and are waiting for new highs to add to their position. This looks like a key leader to me to watch as market figures out what it wants to do over the next month
Reddit (RDDT) – Daily AnalysisReddit (RDDT) – Daily Analysis
RDDT is respecting the bullish structure perfectly. Price bounced strongly from the demand zone (160–175) and is now pushing upward along the red bullish trendline.
The green bearish trendline was broken to the upside, and the retest held, confirming a shift back into bullish momentum.
Right now, price is heading directly toward the major resistance level at 286.98, which is the next key liquidity area where previous buyers/sellers interacted heavily.
Why upside momentum is favored:
Bullish trendline intact: Price is respecting both red ascending trendlines, showing strong structure support.
Break of green bearish line: Confirms bearish momentum is over and bulls are back in control.
Clean path to 287: No major resistance between current price (236) and 286.98.
Market structure forming higher lows: Classic continuation pattern.
Likely Scenario
As long as price remains above 220–225, RDDT is expected to continue this bullish leg toward the 286.98 target zone.
Invalidation
A daily close below 200 would signal trendline break and weaken the bullish outlook.
Summary
Reddit is showing strong bullish continuation after breaking the bearish trendline. The structure supports a likely push toward 287 in the upcoming sessions.
— Avo.Trades.
$RDDT Long Setup - $280 Target During Q1 2026Reddit is one of those gifts that keep on giving since the IPO. Right now, support seems strong and it doesn't seem to be going away, at least from some current indicators. As always, none of this is investment or financial advice. Please do your own due diligence and research.
$RDDT – Larger Head & Shoulders + Bear Flag = Trouble AheadReddit ( NYSE:RDDT ) is showing a bigger-picture head & shoulders pattern combined with a near-term bear flag, and the downside risk is real if the market continues to weaken — especially if NASDAQ:NVDA disappoints on earnings.
🔹 The Bigger Structure:
Head: The peak around $280
Right Shoulder: Forming around $230
This entire pattern is stretched over months — a structural topping pattern with heavy implications.
🔹 Near-Term Structure:
Between $180–$190, NYSE:RDDT is building a tight bear flag.
This is exactly the kind of setup that resolves to the downside when market sentiment turns.
🔹 Downside Levels:
First real support sits around $202, and that’s where sellers likely target first.
A breakdown of the flag could send it there quickly, especially in a risk-off tape.
🔹 Macro Risk:
If NASDAQ:NVDA misses earnings, this market is sitting on a cliff.
Momentum names and high-beta IPOs like NYSE:RDDT tend to get hit the hardest when liquidity dries up.
Combine macro weakness + a topping pattern + a bear flag… and you have a real setup for further downside.
🔹 My Trade View:
1️⃣ Bias: Bearish while under the 9 EMA.
2️⃣ Trigger: Breakdown under the bear flag ($180–$190 zone).
3️⃣ Target: $202 first, and potentially lower depending on market conditions.
4️⃣ Stop: Above the flag highs / 9 EMA.
Why This Matters:
You don’t often see a multi-month topping pattern line up cleanly with a short-term continuation short setup.
NYSE:RDDT has room to fall if the broader market unwinds.
This is one of the cleanest momentum breakdown candidates on the board.
Phenonmenal company about to give a good entryReddit has completed its 5 waves up move since its IPO and is on a healty correction part to reach 145$
I expect it to bottom somewhere between 25th to 28th Nov after completeing the gap fill and restart its upward trajectory.
Short positions should wait for 210-215 levels to make money on the down move. I expect that a good short opportunity will come this week on 19th Nov (Wed) or on 20th Nov (Thu)
Small Cap QuantSignals AI Screener 2025-11-01Small Cap QuantSignals AI Screener 2025-11-01
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NYSE:SOC - Score: 95/100
• Explosive Setup: Extreme volatility (126% IV) with heavy distribution (-21.7% 5d) and accelerating volume pointing to capitulation.
• Options Play: $7.5 PUT exp 2025-11-21
• Catalyst: Continued sector weakness and potential breach of key $8 support level triggering algorithmic selling.
• Potential: Target stock move -35% and option return 800-1200%
• Risk: Extreme volatility could cause whipsaw. Position size 1% max.
NASDAQ:RIOT - Score: 81/100
• Explosive Setup: Crypto miner with massive float turnover (131%) and oversold bearish momentum at critical technical breakdown level.
• Options Play: $17.5 PUT exp 2025-11-21
• Catalyst: Bitcoin price volatility and miner operational updates creating binary outcomes.
• Potential: Target stock move -25% and option return 500-800%
• Risk: Bitcoin rebound could spark short squeeze. Position size 1.5% max.
NASDAQ:MSTX - Score: 79/100
• Explosive Setup: Failed rally setup (+11% 1d after -14% 5d) with extreme 129% IV and bearish gap fill rejection potential.
• Options Play: $12.5 PUT exp 2025-11-21
• Catalyst: Biotech catalyst disappointment and technical breakdown below $13 support.
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• Explosive Setup: Clean energy/bitcoin play at inflection point with 102% IV and bullish bias despite recent weakness.
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NASDAQ:MARA - Score: 72/100
• Expl
Image
osive Setup: High-volume bitcoin miner at technical pivot with 90% IV and bullish momentum divergence.
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RDDT Reddit Options Ahead of EarningsAnalyzing the options chain and the chart patterns of RDDT Reddit prior to the earnings report this week,
I would consider purchasing the 210usd strike price Calls with
an expiration date of 2025-11-7,
for a premium of approximately $11.00.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
RDDT - Sliding off the top=======
Volume
=======
-Decreasing Volume
==========
Price Action
==========
- Latest uptrend broken with gap down
- Rounded top
- Change of trend observed
=========
Oscillators
=========
- Ichimoku, price inside cloud, green kumo thinning, base + conv + lagging shows sign of piercing clouds
- MACD bearish
- DMI bearish
- StochRSI, Bearish
=========
Conclusion
=========
- short to long term swing, price may reverse at current level, to enter spot or wait for pullback.
NYSE: RDDT Weekly – A Classic 0.618 Pullback in PlayRDDT has been trending higher since April, and its uptrend gained momentum after breaking above the 20-week SMA in mid-June.
The stock saw some pullback in mid-September, retesting the previous swing low around 205 (red dotted line), which also lines up with the rising trendline (green) and the 20-week SMA (purple) — right near the key Fibonacci 0.618 level.
This week, price bounced from that confluence zone and closed with a bullish candle, reclaiming the previous low. The move looks like a possible stop-hunt before the next leg higher, showing that buyers are defending this key support area.
Reddit Pulls Back Following BreakoutReddit hit a new high earlier this month, and now it’s pulled back.
The first pattern on today’s chart is the gap on August 1 after earnings and revenue beat estimates. That may reflect positive fundamentals.
Second is the February 10 high of $230.41. The social-media stock tested and held that level last week. Has old resistance become new support?
Third, the 8-day exponential moving average (EMA) is above the 21-day EMA. That could reflect a bullish short-term trend.
Next, the 50-day simple moving average (SMA) had a “golden cross” above the 200-day SMA in early August. That may reflect a bullish long-term trend.
Additionally, stochastics are turning up from an oversold condition.
Finally, RDDT is an active underlier in the options market. That could let some traders position for moves with calls and puts.
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Reddit (RDDT) – Bullish Outlook Backed by Monetization StrengthReddit NYSE:RDDT stands out in the social media space with its community-first model and focus on authentic, user-driven engagement. As digital ad spend accelerates globally, Reddit is positioning itself at the intersection of social networking and data-driven monetization.
🔍 Key Drivers:
💡 AI-Powered Ads: Reddit’s ad platform uses AI to optimize placements, improving ROI for advertisers and strengthening pricing power.
💰 ARPU Beats Expectations: Global ARPU hit $4.53, highlighting strong monetization efficiency and reducing reliance on user growth.
📊 Scalability & Leverage: The AI engine supports operating leverage, setting the stage for robust earnings growth over time.
🚀 Price Momentum: Shares are up over 50% YTD, reflecting investor confidence and post-IPO execution strength.
📌 Technical Setup:
We remain bullish above the $205.00–$207.00 breakout zone. Sustained strength above this range could open the path toward a target zone of $380.00–$390.00.
#RDDT #Reddit #Stocks #StockMarket #TechStocks #AI #SocialMedia #DigitalAdvertising #GrowthStocks #Investing #Bullish #Breakout #EarningsGrowth #ARPU #IPO #AIstocks
$RDDT: betting for a pullback to $220 before Oct 17thbought 220p exp 10.17
Audience Size and Engagement
Reddit attracts around 2 billion monthly visitors and boasts a highly engaged user base concentrated in thousands of topic-specific communities known as subreddits. It achieved 47 percent year-over-year user growth in 2025, signaling its rising prominence among niche audiences.
Advertising Performance and Monetization
Advertising revenue on Reddit surged to $465 million in Q2 2025, an 84 percent increase year over year, driven by enhanced ad-tech targeting and search capabilities. Reddit delivered its first profitable year, and its ad offerings now feature on 18 top performance lists, demonstrating strong ROI for sectors like gaming and fintech.
Community-Driven Differentiators
Unlike algorithm-first platforms, Reddit centers on authentic, interest-based engagement. Users join subreddits aligned with their passions, contributing and upvoting valuable content that fuels organic reach. This model fosters deep discussions and positions Reddit as a cultural insights engine for marketers.






















