Will AI tools have any impact on stocks? REDDIT STOCK !!
REDDIT STOCK: Today, we’re going to be taking a look at the social media platform Reddit, symbol RDDT. And we take a look at the chart. We’re simply going to be considering two things. One, what is the direction of the trend? And two, are there clues as to where the big money might be stacked up? Patiently waiting to buy or patiently waiting to sell.
That’s a definition of an uptrend. So, Reddit just entered a new uptrend today. And when we enter an uptrend, we’ll simply be looking for support levels for either a quick bounce trade or a lower entry price for a longer-term position. So, what we’re going to do next is we’re going to change the time frame to 1-hour candles.
We’ll notice that there is a support level right here in the 12645 to 12131 price range. There’s another support level down here in the 113 to 1105 price range. So, two support levels to consider for either a bounce trade or a lower entry price for a longer-term position. Now, let’s go to the chart. Look up and to the left to see if there is a clue of potential resistance in the chart.
Yes, there is a resistance level if we go back far enough right up here to the 166 to 170 price range. There’s actually another resistance level, if we want to be conservative, right in the 154 to 151 price range, just before that big gap. Okay. So, we’ll consider both of those levels, uh, as potential resistance if we did want to enter, uh, a trade or a longer-term investment in one of these support levels.
Protective stop just below 12131. Drag the target just to that first resistance level. And that trade setup would have a 4.45 four 5:1 reward-to-risk ratio, which is actually a very favourable reward-to-risk setup in this first support level. Okay, so if you wanted to go for that trade, you would ideally hope for Reddit to do something like this.
Have a quick pullback to 12645 or somewhere just below there in that green shaded area. Bounce off that support level before continuing higher and going on to retest our first resistance level. Okay, if you wanted to be more conservative and wait for it to pull back to 113, the 113 price range, you could do something similar where you’d put a buy limit order of 113, a protective stop just below 110 target in the same spot.
REDDIT STOCK
That trade setup would have a substantially greater reward-to-risk ratio if we were to set that up. So that would look something like this. Buy limit order 1130 protective stop just below 1105 and target the same target just in front of that resistance level—that trade setup has a 10-to-1 reward-to-risk ratio. In other words, for every $100 worth of risk you would take, you would have a reward potential of $1,000 or more. Okay, and if you were going to wait for that’s quite a ways away from the current price, though that’s 20 points.
