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This is a technical analysis post. If that’s not for you, skip this one. TLDR price ping pongs before stock go up! I know many hate TA and frown upon it when we post about it, but what else can I say and contribute here regarding Reddit’s financials and fundamentals that have not already been well pointed out and discussed at length by many in the community, which to be honest most of you are way more qualified to speak about that aspect of the company than me. As a retail investor that loves using Reddit, seeing the app I use daily that has a business model I understand, post impressive growth, is all I need to know to give me the conviction to invest my money. Company makes money = good enough to me lol. Ads alone have a long way to go compared to how well META does ads, yet the company is still growing at this rate with albeit slower DAU growth than what many wished for. But another perspective to this is that Reddit has been finding ways to make more money QoQ out of its roughly same user base. Look at the US numbers, ARPU US grew 54% with only a 7% growth in DAUq US….. BULLISH !!!). So since I think the fundamental thesis has already been well established by this sub and we know that the company is financially healthy and that there is so much potential for Reddit to keep improving its monetization strategies, I would like to add my 2 cents on the Technical Analysis perspective, perhaps this helps some of us stop looking at the charts every 5 minutes during market hours (guilty of it myself lmao). Anyway, I digress. I love looking at stock charts, to me they seem to tell a story more often than not. Many have studied all sorts of different patterns and what not, and obviously investing or trading just on TA is dumb IMO. But when the financials and growth potential of a company are clearly bullish yet the stock price seems beaten down, that’s when I love to look at the chart and see if I can get something more out of it to fully understand why the disconnect may be happening. At the end of the day, I think the charts show what the big market participants are doing with a particular stock price and one can infer the bigger picture of the streets sentiment based on the the buying and selling and where it happens on specific price ranges i.e. supply and demand / distributing or accumulating… This is especially true IMO when you look at higher timeframes, long term charts. Short term movement and patterns are mostly just noise, more so on high beta stocks with low volume like RDDT. But take a look at the weekly chart of RDDT and once you zoom out, I think we can see clear patterns hinting to an accumulation going on again. Re-accumulation if you will. If you only look at YTD, then yes the narrative is bearish since price is down like -25% and every “recovery” sells off. But overall price is in a long term uptrend and up around +275% from its IPO price. The weekly chart shared below shows this clear trend by price making higher highs and higher lows so far. Now on Volume which is very important when looking at accumulation/distribution patterns. as you can see below, every year before RDDT has pumped there seems to have been a base or range within which price stayed for weeks/months prior to its impulsive move up. The low volume aspect to RDDT is such a big one for me here to understand why every recent short term rally sells off within a week or less when we are going through an accumulation phase, and why I think this is precisely one of them. Smart money / institutions (or however you wanna name them), they cant just buy and enter their big positions without causing the price to move up by a lot, quite fast. Hence they surely find ways of ping ponging around price (most likely using the derivatives market) to keep price within a range while they finish establishing their big positions for the long term without messing up the price that much, and that takes them months to accomplish. Below you can see on my chart what I mean by this, where I have marked how these phases have played out for both 2024 and 2025 price action and why I think the same thing is currently happening again for 2026 into end of year or 2027. The volume bars and particularly the VRVP (Visible Range Volume Profile) pretty much confirms this for me based on where the high volume nodes lie, which indicate where most of the trading volume is actually taking place and in an accumulation that means where most of the buying is being done. For 2024 the base was around $60, for 2025 around $110 and for 2026 it looks like $145 is our accumulation zone. This is why these zones, once established, act like magnets during the accumulation phases, and 2026 looks just like another one before hopefully a big wave up towards end of year. Ultimately the chart clearly displays the long term uptrend I mentioned with its higher highs and higher lows. More things could be discussed from a TA perspective by going through other indicators such as the RSI, or MACD, ADX DMI, fib levels etc. But I think generally that’s not necessary, keeping it simple is best and volume analysis is the most important one for me, and easier to visually/conceptually understand too. Obviously none of this is financial advice or telling you where to buy or sell RDDT or anything. I’m just a retail investor, not a professional analyst of any sorts. Just wanted to share my opinion, which is speculative at best. Have a nice weekend everyone! submitted by /u/nicholasmoran13 to r/redditstock |