Reddit Stock Surges 7.84% to $263.64 as Bullish Indicators Signal Upside Continuation

Candlestick Theory
Recent Reddit (RDDT) price action reveals key patterns and levels. The most recent session (September 15, 2025) formed a bullish white candle closing near its high ($263.64), reinforcing support near $255–$250, which aligns with multiple rejection wicks in late August. Resistance is evident near $265–$270, where prices stalled on September 10–12. A hammer candle on September 9 at $232.05 signaled reversal confirmation, establishing $230–$235 as major support. Conversely, the August 20 long red candle’s high at $225 remains a swing point, now acting as secondary support.
Moving Average Theory
Reddit’s trend structure remains bullish across key moving averages. The 50-day MA (approx. $228) sits below current price, with persistent closes above it since early September confirming short-term momentum. The 100-day MA (approx. $198) and 200-day MA (approx. $140) slope upward, highlighting the primary uptrend’s resilience. Consecutive closes above all three MAs since late August signal robust institutional support. The widening gap between the 50-day and 200-day MAs suggests accelerating bullish momentum, though this divergence may invite near-term consolidation if profit-taking emerges.
MACD & KDJ Indicators
MACD (12/26-day EMAs) shows a bullish crossover in late August, with the histogram expanding positively into September, signaling sustained upward momentum. No bearish divergence is apparent. KDJ’s current readings (K: ~85, D: ~80, J: ~90) hover in overbought territory, reflecting the recent surge. However, the absence of a bearish crossover or divergence tempers reversal concerns. Instead, KDJ’s high plateau suggests consolidation may precede further gains.
Bollinger Bands
Volatility expanded sharply during Reddit’s September 10 breakout surge (bands width +30%), with price piercing the upper band that day ($261.13). Current trading near the upper band ($265.54 high on Sept. 15) confirms bullish momentum but elevates near-term pullback risks. Support at the 20-day midline (approx. $240) aligns with the late-August consolidation zone and 50-day MA. Band contraction in coming sessions could signal directional bias, with sustained upper-band proximity favoring upside continuation.
Volume-Price Relationship
Key volume surges validate critical price moves. The September 10 rally (+7.84%) recorded the highest volume (7.4M shares) in the dataset, confirming institutional participation. Similarly, above-average volume accompanied recent resistance tests near $265 (Sept. 11–15), suggesting accumulation. Bearish sessions (e.g., Sept. 12 decline) saw relatively muted volume, weakening downside conviction. The most recent session’s 3.68% gain on elevated volume (4.57M shares) reinforces bullish sentiment near resistance.
Relative Strength Index (RSI)
Using a 14-day period, RSI (~68) approaches overbought territory but remains below the 70 warning threshold. The indicator’s steady climb from oversold levels (<30) in early August signals strengthening momentum. However, RSI diverged mildly during the September 12 pullback, showing less downside momentum than price action—a subtle bullish signal. Current neutrality allows room for further upside before triggering overbought alarms, though investors should monitor for any sharp reversal below 60.
Fibonacci Retracement
Applying Fib levels between the June low ($57.22) and September high ($265.54), critical retracement zones emerge. The 23.6% retracement ($217) aligns with the late-August consolidation, now serving as strong support. The 38.2% level ($195) overlaps with the 100-day MA, offering strategic accumulation territory during pullbacks. Confluence exists at the 50% retracement ($161) with the 200-day MA and August swing low ($160.59). Resistance targets include the 127.2% extension ($290) and 161.8% ($330), the latter aligning with the psychological $300–$330 resistance area from February 2025 peaks.
Key Confluences & Risks
Multiple indicators align at $250–$255 (price support, volume node, 50-day MA), making this a high-confidence buy zone. Bullish momentum is reinforced by MACD’s uptick, MA stacking, and RSI neutrality. However, overbought KDJ readings and RSI near 70, coupled with price at Bollinger Band resistance, elevate near-term consolidation risks. A decisive close above $266 could trigger short-term FOMO targeting $290 (127.2% Fib), while failure to hold $250 may invite profit-taking toward $230–$235. No major indicator divergences currently contradict the broader uptrend, though volatility expectations warrant risk management.