Technical Analysis is All About Pattern RecognitionReddit, Inc.BATS:RDDTqhinvestmentRDDT: The Cup-and-Handle and VCP Breakout Setup RDDT has established a clear "rhythm": after a two-month consolidation, it consistently reclaims the 20-day SMA (Red Line), followed by a volatility contraction phase where the price stops making new lows. The stock just completed a Cup-and-Handle pattern, forming a 1 to 1.5-month Volatility Contraction Pattern (VCP) before breaking out, signaling that supply has been fully absorbed. The recent +5.23% move on expanding volume successfully cleared the $240 psychological level, marking a fresh breakout from the consolidation high. This "breakout within a base" confirms that the trend is ready for its next leg higher. Summary: By reclaiming the SMA 20 and breaking out of the tightest part of the pattern, RDDT is showing a high-probability continuation signal. As always, manage your risk and keep stops below the previous swing low.