$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.
