The Long Investor - $RDDT - Video -
More from The Long Investor
The Long Investor - $ETH - TOP 10 -
About This Title
Happy Friday, everyone. Vojtech here. Let’s talk about $RDDT today, because Reddit got absolutely wrecked after the earnings. It is currently down 21% in the pre-market. And Reddit, in my opinion, is a really good company. The financials are great, but the market is punishing it for the stagnation in daily active users. So let’s assess the chart, because I don’t think we need to be panicking at all. Of course, if you are already in a position, it hurts. But structurally I don’t think it is horrible at all.
So this is my last technical analysis, and let’s redo it now. This triangle was clearly invalidated. This isn’t valid at all. This Fib retracement is invalidated as well. And this is still intact: it’s holding. We still have one, two, three, four, five, then a brutal correction, one, two, three, four, five, A, B, C. But what has changed is that we could also do this. I think we can work with the scenario where this is wave one and two and we have three, four and five. It is not beautiful, but I think it is valid. It is correct according to the theory, in my opinion. And we are going for wave C now. We have one, two, one, two, and maybe we will see three, four and five, or A, B, C, we will see. It should not be an A, B, C, because wave C is always five waves. So we will need to give it time and we will see what happens.
The easiest thing we can do right now is go from the all-time low to the all-time high. As we can see, wave A finished on 0.618. And because of this event, the A, B, C correction got prolonged and we are reaching for 0.786. If we put in 0.887, let me make this orange and thinner. I will remove this one. We can remove this as well. You remember it. I think it depends a lot on the market now, because everything is under pressure except some safe havens. If the market finds its feet, I think we could hold 0.786 and go higher. But quite frankly, I think we will see a retest of this support, because it is very important. It was created shortly after the IPO, and I think that will be an insane opportunity, because $RDDT keeps on growing. I do not doubt that they will manage to return to growth of daily active users as well. So I think there will be a significant re-evaluation.
Let’s switch to the daily chart. What I think could really happen is that you get one, two, three, four and five, and that will be our wave C, which could finish over here. Let me make it orange. We will make this red. Another reason why I think we could go over here is that we have this gap in between, this important support, this high as well, and this low. I think the market will try to fill this, because that is what the market likes to do: no doubt someone has stop losses over here, or it is their psychological invalidation level, and they will start selling over here and market makers will enjoy the cheap shares.
What if we try this? As you can see, right now we are retesting this trend line, which is pretty interesting. This downtrend acted as a support for $RDDT, so it is pretty likely that we could bounce over here, go a bit higher, and then wave five could finish somewhere over here, which aligns almost with the new year. But we will see. I think this is a high-probability scenario right now: this one, two, three, four, five. And really I think this creates an opportunity. If we go to this level, I will be buying, for sure, because $RDDT is great and it has a strong base. I think the people who use Reddit are the ones who are trying to resist AI trends, and they will always prefer to reach the community instead of going to a language model. They appreciate human contact on the internet. So I am a big, big believer in Reddit in the AI era.
This is what I am looking at right now, guys. I think it is painful for shareholders, but it creates a great opportunity. So this is my view. We can, I believe, see this as wave one and two. If I am honest, it is not perfect, but the structure is there, and it is a low, higher high and higher low. So this target is technically valid. It is not perfect in terms of Elliott Wave Theory. It is not one, two, three, four and five, but it is a trend, and as long as we hold the higher low, it is a valid uptrend.
Even if we should be conservative over here, the next high would reach 1.272. If the market finds the value and the Elliott Wave count hits, then wave three is definitely at 1.618. But if this is an A, B and C, this is the realistic target, and the 1 Fib is the very, very conservative one. It depends on the performance of the company. I am a believer in $RDDT, so 1.618 for wave three is my target.
And that’s it, guys. Thank you for watching. I will see you next week with the A, B, C correction video lesson. Stay strong, guys. Hopefully the market isn’t as horrible before the weekend. Take care, and see you on Monday.
Where To Go Next:
Follow our official X page for more insights - @TheLongInvest
If you spend too much time on IG, follow us - @TheLongInvestor
Are you a proud member? - Wear the discipline
Happy Friday, everyone. Vojtech here. Let’s talk about $RDDT today, because Reddit got absolutely wrecked after the earnings. It is currently down 21% in the pre-market. And Reddit, in my opinion, is a really good company. The financials are great, but the market is punishing it for the stagnation in daily active users. So let’s assess the chart, because I don’t think we need to be panicking at all. Of course, if you are already in a position, it hurts. But structurally I don’t think it is horrible at all.
So this is my last technical analysis, and let’s redo it now. This triangle was clearly invalidated. This isn’t valid at all. This Fib retracement is invalidated as well. And this is still intact: it’s holding. We still have one, two, three, four, five, then a brutal correction, one, two, three, four, five, A, B, C. But what has changed is that we could also do this. I think we can work with the scenario where this is wave one and two and we have three, four and five. It is not beautiful, but I think it is valid. It is correct according to the theory, in my opinion. And we are going for wave C now. We have one, two, one, two, and maybe we will see three, four and five, or A, B, C, we will see. It should not be an A, B, C, because wave C is always five waves. So we will need to give it time and we will see what happens.
The easiest thing we can do right now is go from the all-time low to the all-time high. As we can see, wave A finished on 0.618. And because of this event, the A, B, C correction got prolonged and we are reaching for 0.786. If we put in 0.887, let me make this orange and thinner. I will remove this one. We can remove this as well. You remember it. I think it depends a lot on the market now, because everything is under pressure except some safe havens. If the market finds its feet, I think we could hold 0.786 and go higher. But quite frankly, I think we will see a retest of this support, because it is very important. It was created shortly after the IPO, and I think that will be an insane opportunity, because $RDDT keeps on growing. I do not doubt that they will manage to return to growth of daily active users as well. So I think there will be a significant re-evaluation.
Let’s switch to the daily chart. What I think could really happen is that you get one, two, three, four and five, and that will be our wave C, which could finish over here. Let me make it orange. We will make this red. Another reason why I think we could go over here is that we have this gap in between, this important support, this high as well, and this low. I think the market will try to fill this, because that is what the market likes to do: no doubt someone has stop losses over here, or it is their psychological invalidation level, and they will start selling over here and market makers will enjoy the cheap shares.
What if we try this? As you can see, right now we are retesting this trend line, which is pretty interesting. This downtrend acted as a support for $RDDT, so it is pretty likely that we could bounce over here, go a bit higher, and then wave five could finish somewhere over here, which aligns almost with the new year. But we will see. I think this is a high-probability scenario right now: this one, two, three, four, five. And really I think this creates an opportunity. If we go to this level, I will be buying, for sure, because $RDDT is great and it has a strong base. I think the people who use Reddit are the ones who are trying to resist AI trends, and they will always prefer to reach the community instead of going to a language model. They appreciate human contact on the internet. So I am a big, big believer in Reddit in the AI era.
This is what I am looking at right now, guys. I think it is painful for shareholders, but it creates a great opportunity. So this is my view. We can, I believe, see this as wave one and two. If I am honest, it is not perfect, but the structure is there, and it is a low, higher high and higher low. So this target is technically valid. It is not perfect in terms of Elliott Wave Theory. It is not one, two, three, four and five, but it is a trend, and as long as we hold the higher low, it is a valid uptrend.
Even if we should be conservative over here, the next high would reach 1.272. If the market finds the value and the Elliott Wave count hits, then wave three is definitely at 1.618. But if this is an A, B and C, this is the realistic target, and the 1 Fib is the very, very conservative one. It depends on the performance of the company. I am a believer in $RDDT, so 1.618 for wave three is my target.
And that’s it, guys. Thank you for watching. I will see you next week with the A, B, C correction video lesson. Stay strong, guys. Hopefully the market isn’t as horrible before the weekend. Take care, and see you on Monday.
Where To Go Next:
Follow our official X page for more insights - @TheLongInvest
If you spend too much time on IG, follow us - @TheLongInvestor
Are you a proud member? - Wear the discipline
Comments (0)