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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