Reddit (RDDT) shares surged in premarket trading on Wednesday after the company reported earnings that topped estimates and provided a better-than-expected outlook amid robust digital advertising spending and lucrative 澳洲幸运5官方开奖结果体彩网:artificial intelligence (AI) content 澳洲幸运5官方开奖结果体彩网:licensing deals.

The company guided fourth-quarter revenue of between $385 and $400 million, handily surpassing the $357.9 million consensus view. While advertising sales generate the majority of Reddit’s revenue, AI licensing deals with Google’s Gemini and Open AI’s ChatGPT add a valuable boost to the social media platform's top line.

The stock was up more than 22% to around $100 in recent premarket trading. Through Tuesday's close, Reddit shares had more than doubled since 澳洲幸运5官方开奖结果体彩网:going public♊ in late March and were up 24% over the past month.

Below, we break down the 澳洲幸运5官方开奖结果体彩网:technicals on Reddit’s chart and point out important post-earnings price levels 𒀰to watch out for.

Ascending Triangle Breakout

Since its March listing, Reddit shares oscillated within an 澳洲幸运5官方开奖结果体彩网:ascending triangle before breaking out above the pattern’s top trendline earlier tꦏhis month.

Moreover, the 澳洲幸运5官方开奖结果体彩网:relative strength index (RSI) confirms bullish price momentum in the stock with a reading nearing the closely watched 70 level, but also cautions looming 澳洲幸运5官方开奖结果体彩网:overbought conditions. It’s also worth pointing out the stock registered its largest daily 澳洲幸运5官方开奖结果体彩网:trading volume since early August on Tuesday, as investors place🦋d bets ahead of the earnings report.

Let’s use technical analysis to project a possible 澳洲幸运5官方开奖结果体彩网:price target and also identify several key 澳洲幸运5官方开奖结果体彩网:support levels where the stock may find buying interest during 澳洲幸运5官方开奖结果体彩网:pullbacks.

Key Upside Price Target to Watch

To project an upside price target, we can use the 澳洲幸运5官方开奖结果体彩网:measuring principle, also known as a measured move. 

This technique works be calculating the distance between the ascending triangle’s two trendlines and adding that amount to the breakout point. For example, we add $40 🌱to $75, which forecasts a target of $115, around 41% above Tuesday’s closing price. 

Investors who have purchased the stock a pre-breakout levels may decide to 澳洲幸运5官方开奖结果体彩网:lock in profits around this area, especially if other 澳洲幸运5官方开奖结果体彩网:indicators are pointing to overbought conditions.

Important Support Levels to Monitor

On an initial 澳洲幸运5官方开奖结果体彩网:retracement, investors should keep a close eye on the $75 level. This area on the chart could attract buying interest near the ascending triangle’s top trendline, which may have flipped from a location of prior 澳洲幸运5官方开奖结果体彩网:resistance into future support.

Selling below this level could see the shares revisit $65, a region just below the ascending triangle’s lower trendline where the price may encounter support near a 澳洲幸运5官方开奖结果体彩网:horizontal line connecting a r🍌ange of similar trading levels on the chart between mid-May and earꦯly October.

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