Reddit Stock Jumps 4.8% To $234.77 Extending 4-Day Rally To 10.83%

Reddit (RDDT) rose 4.80%, marking the fourth consecutive day of gains, with a cumulative increase of 10.83% over this period. The stock closed at $234.77 on August 13, 2025, reflecting strong bullish momentum. This analysis evaluates technical signals across multiple frameworks to assess the sustainability of this trend and potential reversal zones.
Candlestick Theory
The four-day rally formed consecutive bullish candles with higher highs and higher lows, indicating sustained buying pressure. A key resistance level emerged near $237.35 (August 13 high), while support solidified around $220-$224 (August 11-12 lows). The absence of reversal patterns like bearish engulfing or shooting stars suggests near-term bullish bias, though proximity to the $237 resistance warrants vigilance for exhaustion signals. Earlier swing highs near $230 (February 2025) now transition to intermediate support.
Moving Average Theory
The 50-day SMA ($178) recently crossed above the 100-day SMA ($165) and 200-day SMA ($140), confirming a long-term bullish trend. Current price ($234.77) trades well above all three averages, demonstrating robust uptrend strength. The 50-day SMA has provided dynamic support during pullbacks (e.g., July $160 rebound), while the rising 200-day SMA underscores structural bull momentum. Golden crosses occurring in Q2 2025 continue to validate the primary uptrend.
MACD & KDJ Indicators
MACD (12,26,9) shows a sustained bullish crossover since early August, with histogram bars expanding – signaling accelerating upward momentum. KDJ readings (K:81, D:75, J:93) entered overbought territory (>80), typically preceding short-term pullbacks. However, their upward-sloping trajectory since the July low indicates persistent buying pressure. Divergence is absent as both oscillators align with the price rally, though KDJ’s overbought condition may amplify near-term profit-taking risk.
Bollinger Bands
Bands expanded sharply during the August breakout, reflecting increased volatility. Price consistently tested the upper band ($236-$237), confirming strong bullish conviction. Band expansion during uptrends often precedes continuation rallies, though a contraction phase could signal consolidation. Support resides at the 20-day SMA ($205), with the middle band acting as a dynamic floor during minor retracements.
Volume-Price Relationship
Volume surged 55% during the August 1 rally (+17.47%), validating the breakout. Subsequent gains saw declining volume (-36% from August 1 to August 13), indicating reduced participation. While lower volume on advances often signals caution, the absence of distribution days (heavy volume on down days) suggests no institutional selling pressure. The overall volume profile supports trend continuation provided key supports hold.
Relative Strength Index (RSI)
The 14-day RSI (70.6) breached the overbought threshold (70), historically preceding 5-10% pullbacks (e.g., February 2025 peak). However, RSI can remain elevated during strong trends, and momentum divergence is absent. Traders should monitor for RSI reversal patterns near $237 resistance. The indicator’s warning nature necessitates confirmation from price action for reversal signals.
Fibonacci Retracement
Applying Fibonacci to the April-August 2025 rally (swing low: $79.68 on October 28, 2024; swing high: $237.35 on August 13, 2025), key retracement levels emerge at $189 (23.6%), $176 (38.2%), and $158 (50%). These align with technical supports: $189 converges with the 50-day SMA and February 2025 resistance-turned-support, while $158 overlaps with the July consolidation zone and 100-day SMA. Current price action shows confluence near $237–$240, the 127.2% extension level.
Confluence and Divergence
Significant bullish confluence appears at $189-$191 (50-day SMA, 23.6% Fibonacci, and prior resistance). Bearish divergence is absent across oscillators, though RSI and KDJ overbought readings near $237 resistance create a critical monitoring zone. Volume non-confirmation during the four-day rally represents the primary cautionary signal. A decisive break above $240 would target the 161.8% Fibonacci extension ($258), while failure at $220 could trigger a retest of the $189-$191 confluence support.