Deep Dive RDDT: Reddit’s Sudden Collapse Put It on My Radar
A sharp selloff, surging attention, and a chart at a major decision point have turned RDDT into an intriguing potential setup.
Before getting into Reddit, I want to give you a quick update on one of the earlier setups featured in these Deep Dives.
If you have been following along, I sent an alert on IBM on July 23 and have continued monitoring the position as the chart developed. The trade is currently showing an unrealized gain of approximately $2,825, or 13.71%.
IBM has now crossed and closed above its 21-day EMA, opening the door to a potential move toward the 50-day SMA. That remains the area where I plan to close the position and take the profit, and I will send an alert when that happens.
This is exactly why I put these Deep Dives together.
The goal is not simply to talk about stocks after they move. It is to identify something that catches my attention, break down what is happening, wait for the chart to confirm the opportunity, and then follow the position from entry through exit.
That brings me to Reddit.
The selloff jumped out at me as soon as I saw it. Then RDDT began generating a lot of online chatter and appearing across several of my scans. Once that started happening, I knew I needed to stop and take a closer look.
A sudden drop can create an opportunity, but it can also be the beginning of a much larger breakdown.
The chart now has to tell us which one this is.
Below, I’m breaking down the price action, the moving averages, the momentum indicators, and the levels that could determine whether RDDT develops into a trade or remains a stock that needs more time.
