Reddit Stock Jumps 6.79% to $126.20 Amid Bullish Technical Signals

Reddit (RDDT) surged 6.79% in the most recent session, closing at $126.20 and marking its third consecutive gain with a cumulative 9.71% advance over this period. This momentum occurs against a backdrop of volatile historical price action, including a February 2025 peak near $230 and a subsequent pullback to the $110-$120 range in June 2025.
Candlestick Theory
The three-day rally culminating on June 16, 2025, formed a bullish "Three White Soldiers" pattern, characterized by progressively higher closes and expanding daily ranges. The session’s candle closed near its high of $126.59 after testing support at $121.43, reflecting strong buying pressure. Key resistance is evident at $130.11 (May 14 high), while support consolidates between $114.45 (June 11 low) and the psychological $120 level. A decisive close above $130.11 would signal a breakout, whereas failure to hold $120 may indicate near-term exhaustion.
Moving Average Theory
Reddit’s price currently trades above all critical moving averages, with the 50-day MA near $118, the 100-day MA around $112, and the 200-day MA at approximately $102. This configuration suggests a robust uptrend, reinforced by the golden cross (50-day crossing above the 200-day in late May 2025). The stacked alignment—price > 50-day > 100-day > 200-day—confirms bullish momentum, though extended deviations historically precede consolidations. The moving averages now act as dynamic support, with the 50-day particularly pivotal for trend sustainability.
MACD & KDJ Indicators
The MACD (12,26,9) shows a bullish crossover above its signal line, with the histogram expanding positively, indicating accelerating upward momentum. Concurrently, KDJ oscillators reside in overbought territory (K:82, D:78, J:90), reflecting the recent sharp rally. While this KDJ positioning warns of potential near-term pullbacks, the MACD’s strength and positive divergence during June’s $110.85 low suggest underlying trend resilience. The confluence of bullish MACD and overbought KDJ implies short-term consolidation risk but sustained intermediate bullishness.
Bollinger Bands
Price rebounded sharply from the lower Bollinger Band (20-day MA, 2 SD) near $115 on June 12, 2025, and now tests the upper band near $127. The bands expanded during the 6.79% surge, signaling increasing volatility and directional conviction. Historically, sustained closes above the upper band precede short-term mean reversion, while breakouts amid expanding bands suggest trend continuation. Current positioning indicates upside momentum, though the upper band may cap immediate gains without consolidation.
Volume-Price Relationship
The rally’s credibility is bolstered by rising volume, with June 16’s volume (8.41M shares) exceeding the 50-day average. This surge occurred alongside a 6.79% gain, confirming buyer conviction. Earlier declines (e.g., May 21’s 9.27% drop on 17.4M shares) featured high volume, affirming selling pressure at resistance. Current volume expansion on advances signals accumulation, though sustainability requires ongoing volume support. A divergence—rising price with falling volume—would indicate weakening momentum.
Relative Strength Index (RSI)
The 14-day RSI reads 71, edging into overbought territory and reflecting the three-day surge. While this warns of potential consolidation, RSI has yet to exhibit bearish divergence; prior peaks (e.g., February’s $230 high) coincided with RSI > 80. Notably, RSI held above 40 during June’s $110.85 retest, demonstrating resilient momentum. A sustained RSI above 70 could prolong gains in strong trends, but repeated tests of this level heighten reversal probability without supportive catalysts.
Fibonacci Retracement
Applying Fibonacci levels to the May 14 high ($130.11) and June 12 low ($110.85), key retracement thresholds emerge: 23.6% ($115.40), 38.2% ($118.21), 50% ($120.48), and 61.8% ($122.75). The current price ($126.20) has surpassed the 61.8% level, positioning the prior high ($130.11) as the next target. This breakout aligns with the 127.2% extension level at $129.50, creating a confluence zone near $130. Holding above $122.75 maintains bullish bias, while failure risks retesting the 50% level ($120.48).
Confluence and Divergence Observations
Multiple indicators converge to support a bullish bias: Moving averages signal sustained uptrend alignment, MACD confirms accelerating momentum, and volume validates price gains. Fibonacci and Bollinger Bands identify $130 as critical resistance. However, KDJ and RSI overbought conditions diverge from the otherwise bullish setup, warning of near-term consolidation before testing $130. This divergence and the proximity to psychological resistance ($130) suggest tactical exhaustion may precede further upside.
Conclusion
Reddit’s technical structure favors bullish continuation toward $130 resistance, supported by trend-confirming indicators and volume. However, overbought oscillators and Fibonacci resistance warrant caution for a pullback toward $122–$125 before a decisive breakout attempt. Traders should monitor volume on tests of $130 and RSI/KDJ cooldowns for trend sustainability signals. The dominant trend remains upward, but probabilistic near-term consolidation appears likely.