Reddit Stock Surges 5.20% to $150.45 Amid Strong Technical Bullish Signals

Reddit (RDDT) shares closed at $150.45, gaining 5.20% in the most recent session on substantial volume of approximately 9.11 million shares traded. This significant upside move warrants a comprehensive technical assessment utilizing established frameworks.
Candlestick Theory
Recent candlestick patterns indicate growing bullish momentum. The June 24th session formed a bullish engulfing pattern, closing near the high after gapping up. This was followed by a period of consolidation with multiple spinning tops and dojis near $143-$145, suggesting indecision before the decisive 5.20% white candle on June 30th that closed near session highs. Immediate resistance is evident at $155 (recent high), while support converges near $143.50 (previous swing high and consolidation zone). A confirmed break above $155 would signal potential continuation.
Moving Average Theory
The 50-day EMA near $133.50 and 100-day SMA near $123 are sloping upward, reinforcing the intermediate-term bullish structure. Crucially, the price maintains position above the rising 200-day SMA near $115.30. The proximity of the 50-day and 100-day averages suggests consolidation but the price holding firmly above all three key moving averages signals a dominant bullish trend across timeframes. A sustained break below the 50-day EMA would be needed to challenge this perspective.
MACD & KDJ Indicators
The MACD line crossed above its signal line near the zero line approximately two weeks ago and continues to ascend within positive territory, indicating strengthening bullish momentum. The KDJ indicator shows the %K line (81) and %D line (75) in overbought territory, reflecting the recent strong push. While KDJ overbought conditions can sometimes precede pullbacks, the concurrent MACD bullishness suggests the uptrend may have staying power. There is currently no bearish divergence between price action and these oscillators.
Bollinger Bands
Price is currently testing the upper Bollinger Band near $153, suggesting short-term overextension relative to recent volatility. The bands themselves have widened moderately after a period of contraction in late June ($141-$147 range), indicating a rise in volatility accompanying the breakout. A move back inside the bands without significant price erosion would be healthy. The 20-period moving average (mid-band) near $145 now acts as dynamic support.
Volume-Price Relationship
The rally since the June 17th low at $126.20 has been validated by generally rising volume on up days, notably on June 18th (12.18M shares, +5.47%) and June 24th (6.55M shares, +4.96%). The latest 5.20% gain occurred on high volume (9.11M shares), a bullish confirmation. Distribution appears absent during minor pullbacks, which have occurred on lighter volume, such as the June 27th decline (-0.65% on 17.68M shares – elevated but primarily driven by the prior day's gap up volatility rather than sustained selling pressure). This volume structure supports the sustainability of the uptrend.
Relative Strength Index (RSI)
The 14-period RSI calculates to approximately 58. This places it firmly in neutral territory, having risen significantly from oversold levels near 30 in early June but avoiding the overbought threshold (>70). The current reading suggests room for further upside before technical exhaustion becomes a primary concern. Previous rallies in 2025 stalled as RSI approached or exceeded 70, so this indicator will be key for monitoring potential overextension should the price continue ascending.
Fibonacci Retracement
Applying Fibonacci retracement to the significant decline from the March peak near $230 to the April trough near $80 defines key levels. The 50% retracement level near $155 aligns perfectly with the June 30th high, making it a critical technical resistance. The 61.8% retracement resides near $175. Support-wise, the 38.2% retracement near $135 overlaps with the June 18th low and converges with the 50-day EMA, creating a strong support zone. A decisive break above $155 would target the $175 level.
Confluence Points & Conclusion
Significant confluence exists at the $155 level, combining Fibonacci resistance (50%), recent swing highs, and the upper Bollinger Band. Bullish confirmation includes price trading above all key moving averages, positive MACD momentum, supportive volume dynamics, and an RSI not yet overbought. The primary divergence involves the overbought KDJ signal against the neutral RSI, suggesting the possibility of short-term consolidation or pullback despite the bullish medium-term structure. Overall technicals lean bullish, with a sustained break above $155 likely opening the path towards $175. Conversely, a failure to hold above $143 could shift focus back towards the $135 confluence support zone.