Is Reddit ready to go? $RDDT – June 6, 2024
This is Scott at StockMarketMentor.com with your Chart of the Day. I want to take a look at Reddit ( NYSE: RDDT ).
Reddit ( NYSE: RDDT ) was an IPO this year and hasn’t been able to get much traction. It’s been pretty wide, and pretty loose. We had the initial pop of the IPO, a run up to just under 75.00, and then through the month of March, a big pullback.
They had positive earnings, and now it’s actually looking like it wants to get going here, which is perfect timing because there’s a big-to-do about the Roaring Kitty and GameStop ( NYSE: GME ) all over again. I’m not going to go too deep into that at all, but obviously, GameStop ( NYSE: GME ) is running, and that brings people back to WallStreetBets and that means more eyes over on Reddit ( NYSE: RDDT ).
I think all this hype with GameStop ( NYSE: GME ), AMC ( NYSE: AMC ), Roaring Kitty, and the like, is pretty positive for Reddit ( NYSE: RDDT ). It means a lot of eyeballs and potentially them being able to monetize more members, maybe more new members coming into the Reddit ( NYSE: RDDT ) community.
I definitely think this stock looks interesting. It is a bit extended off of the 8-day exponential period moving average. We can see clear support down here at 53.00, it’s at 63.00 right now, so that’s a pretty wide range to have a loose stop. I definitely think you’ll want to watch that 8-day exponential period moving average. I would consider a breakout above 66.00 actionable for a potential swing up to around $75.00.
Now, you would want to trade that on a short-term chart, ideally an hourly chart, and really follow that hourly trend higher and keep an eye on those hourly moving averages. But if the hype around Reddit ( NYSE: RDDT ), GameStop ( NYSE: GME ), and Roaring Kitty continues, I definitely think the Reddit ( NYSE: RDDT ) stock here, is going to benefit from people piling in, looking for a potential boost in membership, and maybe an increase in advertising dollars.
So, whether it’s a momentum move above 63.00 or a breakout above 66.00, I definitely think that this is one to have on a close watch list and follow this momentum up. But don’t marry the stock because it is a trend and a momentum move that is clearly already in motion.
By the way, I’ve just got to ask you, Guy posted a portfolio update and is sitting on nearly half a billion dollars worth of GameStop ( NYSE: GME ) options. If you are Roaring Kitty, what are you doing with that money? Are you going to sell? Would you HODL or maybe put all that money into Bitcoin?
Let me know what you would do in the comments below and keep an eye on Reddit ( NYSE: RDDT ) for a potential momentum continuation move up to the enthusiasm high from the IPO at around $75.00.
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