Long

Robinhood waking up bigtime Macro signs BULLISH

Updated

Hi guys this is a MACRO analysis on Robinhood (HOOD). Macro meaning larger timeframe aka the 1 week in this instance.

Alot of stocks are down from their previous tops. Which means potentials for longterm gains for many names possible.

During the decline of assets, price action may create specific chart patterns that may signal the bottom.

For HOOD -> such a pattern was observed. We've been in this pattern since January 2022.

Making it a BIG DEAL. Acting like a pressure cooker if you will.

This pattern is known as the Rectangle pattern, better known as Consolidation or Consolidation zone.

Remember chart patterns must be traded on confirmation of a breakout. Its never a good idea to buy within chart patterns as experts say within chart patterns its a 50/50 chance. Therefore, probabilities increase once confirmation comes in.

We are currently in the process of trying to breakout.

I am now on full observation mode, as i will be looking to add.

This current move was initiated by a retrace to the golden FIB ratio at around 10.60$. We maintained support, allowing for our current UPTREND.

Notice also i have momentum indicators up.

STOCH RSI has crossed Bullish. This will allow for buying to commence.

MACD is also giving MACRO bullish signs, BULLISH CROSS ABOVE the 0 level and increasing size of the histobars. Major uptrends occur when MACD is crossed bullish above 0 level, you could even say Bull markets occur.

We will continue our Uptrend until Bearish crosses are seen.

Now lets look at the market structure above the consolidation zone. Notice how theres not much data above. Only a single sharp group of candles on the left. This shows no resistance exists above consolidation zone. This means price action above will cut through like butter to my 1st target zone at around $30-35.

NOW REMEMBER watch for confirmation of a breakout atleast on the 1 day but 1 week prefered.
I will be continously updating new information as needed.
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Thank you for taking the time to read my analysis. Hope it helped keep you informed. Please do support my ideas by boosting, following me and commenting. Thanks again.

Stay tuned for more updates on HOOD in the near future.

If you have any questions, do reach out. Thank you again.

DISCLAIMER: This is not financial advice, i am not a financial advisor. The thoughts expressed in the posts are my opinion and for educational purposes. Do not use my ideas for the basis of your trading strategy, make sure to work out your own strategy and when trading always spend majority of your time on risk management strategy.

Note

NOte also with chart pattern breakouts VOLUME needs to spike and increase, for sustained uptrends we need consistent increase of volume.

Note

We have made it outside the Consolidation zone. Whats next? Well we need confirmation that this Supply zone has now turned Demand. Or in other words this previous resistance has now turned to Support.

One way to assess is through Decisive Candle stick patterns.

Dont be surprised if we come down to test 13$ and stay here for days to weeks.

Also note the potential for fakeouts, as there is a gap below us. Not that it has to fill but it is a possibility. This would spell a fakeout and we must then look to next week to see if momentum to upside continues.

This chart is on 1 day. Note such signs on larger timeframes such as the 3 day or 1 week are more decisive as well.

Note

On the 1 week chart, we have printed a Higher High on the RSI, moving above the resistance trendline.

We must take it one step at a time for sure but this tells me there is an attempt to trend change with us moving sides to breaking out of consolidation. Watch to the upcoming days to weeks for confirmation.

Note

On the 1 day we may have confirmed the breakout with the candle on the 16th being a big body candle. The close occured above the previous 2 candles which could have negated bearishness associated with the candles especially if seen after a uptrend.

I would however like to see confirmation on larger timeframes, not yet established. This weeks candle close is key.

Note

reminder that theres always a chance for a fakeout without confirmation.

Note

Quick update on 1 day timeframe.. It seems as though we are breaking out of a Penant formation.

Note Volume signs are in line with theory. That inside the triangle, we get flat volume.

However, During breakout we should see a spike in volume.
Which i have not yet seen. Keep an eye. Can be a fake out today or next couple days. Look to next couple days for clarity.

Note

Update on 1 week timeframe. Remember evidence/ signs/patterns found on larger timeframes are much more significant than lets say the 1 day.

As we can see last weeks candle was a great one.

1. We closed ABOVE the previous weeks close.
2. Lower wick showcasing heavy demand from the start of wick to start of body.

On top of that, we are now seeing the VOLUME spike i wanna see after breaking chart patterns (in this case the rectangle or consolidation pattern break).

We need to continue this increase in volume. Decrease means a potential for fakeout. Massive spikes mean to the moon. Steady increases mean might take some time.

Personally would of loved to see a even bigger body of candle. But this may be the confirmation we need to move forward in price.

Now remember breaking such chart patterns, require alot of momentum and time. Just because we broke out does not mean we go to the moon right away. But there is some possibilities its can. And that should be reflected in your buying if you choose to do so. HOWEVER Goal should be always to buy cheap (prices closer to breakout point) and spread out your buys, play it strategically. Remember this is not financial advice.

And rule of thumb breakouts usually come back to assess whether or not this breakout was legit, so test the resistance we broke out of as support. So its also possible we move up and come back down.

Note

UPDATE. Just a heads up First PRICE TARGET is most likely $15.30 area.

After we must assess momentum/ volume to see if its possible to break it

If not we may come back down to test the breakout area.

Note

We are ABOVE the 15.30 lvl i mentioned previously.

Confirmation of support, will lead price to our next lvl $19.17 area.

If we break and confirm support on 19.17, our next lvl will be 30-35 and that will happen very fast due to the absence of much price action above the 19.17 lvl.

Confirming Support on each lvl, will mean the previous lvl will be less likely to be seen. Unless Macro correction signals show.

Flipping resistance to Support leads that area to be of high demand.

So overall im bullish until proven otherwise.

Note

**** Please note the typo *first target* - It should read 1st Major Target.

Note

We have topped temporarily at 17.20$

We are now on our way to test our 1st MAJOR Support lvl at 15.38$

Important to maintain this lvl, if we cannot hold we are likely to move back DOWN to our Consolidation breakout price lvl. around $13.00.

This is part of just natural price action and is extremely healthy. We do NOT want things to just continue to rip up without support testing.

WIll keep you updated with any new developments!

Note

STOCH RSI has crossed BEARISH. We have NOT yet confirmed below 20 lvl however. So keep watching. Potential to curve up again. With the crypto craze happening, HOOD will be on the receiving end as large percentage of revenue comes from Crypto. I think HOOD is lagging behind names like COIN, but will absolutely catch up. In my opinion.

Note

A warning sign. 2 daily candle prints of Upper Wick candles. Not a good look here.

Showing signs of sell pressure.

Can be the start of a pullback to re-test the breakout of consolidation zone.

Look to the Support trendlines drawn for support.

Ill be watching closely. If we do have a pullback, itll be great time to add to positions.

Note

Todays daily candle close was a large body green candle. Buying up alot of the selling that happened previous couple candles.

Watch HOOD to reach the $19.00 lvl which is also a Resistance area. In the coming days, maybe by end of this week.

Note

REMEMBER we are in a crypto bull market and HOOD makes majority of its money from its users buying/selling crypto. Do the math. In my opinion HOOD hasnt even moved like some crypto related stocks and will move similar to names like COIN.

Note

UPDATE: We have reached the $19.00 Supply zone. Important to watch. There is potential for rejection here to a minor pullback. We've been ripping for some time so it be healthy.

NOTE however, if we confirm a flippening of supply to demand. And we see Support. It wont be too long till we see $30.

So either way
1. Pullback is buy opportunity
2. confirmation of support here at 19.00 is also an area to add to positions.

Note

Bull markets dont have logic and anything can happen. Stay vigilent.

Note

UPDATE: I rarely pay attention to news, but will say Loving the news coming out on HOOD. Makes me more Bullish. I also use cramer as an inverse indicator. I think the opposite he does.

Note this move will not play out tomorrow. There will be pullbacks. But thats normal. Stay level headed and observe levels and where we at. If we move back to demand zones. Thats when you should consider to buy in my opinion, especially if theres confluence with indicators and other factors.

Note

So back to TA. This chart on 1 day.

We are getting some warning signs for increased probability of a pullback on short term.

FIB retracement was done from local top at 19 to previous swing low.

Notice how yesterdays candle body closed below 0.786 FIB lvl.

If todays candle maintains this and has a upper wick. We are likely to move back down to 0.618 lvl.

At the very least we will also move back to test the 21 EMA as support (purple moving average).

RSI as printed a lower low.
STOCH RSI Bearish cross
MACD also bearish cross with a red histobar print.

With this expect until proven otherwise for indicators to refresh at oversold lvls. If and when they do, that would pose a best times to buy. Along with hitting fib levels. My eyes are fixed on the 0.618 level.

Note

Today candle print was an Engulfing Bullish Candle. Looking strong once again.

Yesterdays down move was taken back in 1 day.

SHowing signs of demand at the 0.786 FIB lvl.

RSI has reversed back. Lower low was negated.

Keep watching. Likely we retest the 19.00 lvl. If support is confirmed ABOVE 19.00. My initial thesis of moving to $35.00 is probable.

Note

Note also for us to move past 19.00 RSI needs to print a higher high. If not we will continue either sideways or down to test lower FIB lvls or support lvls.

Note

WATCH TODAY. Up 6% pre-market. Well ABOVE 19.00 now. But is it sustainable? Look for a decisive candle close of todays candle ABOVE 19.20 for confirmation.

HOOD with confirmation ABOVE 19.20, can go parabolic now.

Note

There is however Bearish DIvergence forming on 1 day. Important to pay attention to. (Price printing higher highs but indicators printing lower highs.)***

As we can have a sell off here. RSI must print a higher high inorder to negate this waning RSI.

Note

A quick update on the 1 day timeframe for HOOD.

As you can see Our current price action is now below the Lower border of the UP sloping channel.

We are also attempting to test SUPPORT on the 21 EMA (Purple MA)

If we confirm/maintain Support, bounce can continue.

Re-entering the UP sloping channel, would be a great Bullish sign as well. (Less probable though). -> In my opinion we need to cool off/pull back a bit before resuming uptrend.

If we break and confirm BELOW 21 EMA(Purple), we can continue lower.

If we do look to the 50 SMA as Support.

If 50 SMA broken below and confirmed, $15.38 is the next Support.

These for me would be key BUY ZONE. With the presence of demand.

Now lets take a look at the Momentum of the move, with MACD & STOCH.

Look left for what can potentially happen.

The MACD can dip below 0 lvl, which could lead to sideways price movement.

This is ideal scenario as momentum would reset to set way for next uptrend with a Bull cross back Above 0 lvl, providing maximum momentum.

Without Green histobars and a Bullish cross, don't expect momentum to upside.

Notice now the STOCH, we have gone to Extreme Oversold conditions, at 0.

Good sign, But look left to notice that for almost 31 days, STOCH stayed below 20 lvl, causing sideways movement.

A Bullish cross ABOVE 20 lvl, is the needed momentum shift for a continuation of Uptrend.

Volume is also on a slight decline. SLowdown of volume makes sense with this recent downside. We need volume spike to resume the uptrend.

Note

Our current Daily timeframe move down has shifted Macro timeframe, the 1 week.

Notice Bearish Engulfing candle.

This until proven otherwise, signaling a potential Rejection at the 19.20 lvl.

Maybe showing signs of a pullback on larger timeframe.

As seen in the previous update on 1 day, some bearish signals/ momentum exist.

Weekly has been infected with what the 1 day has, so risk of further downside exists. Can last weeks+.

With MACD losing steam with light green bar print. Can at the very least be a sign of consolidation/ sideways action and at the worst sell off even more.

IMportant to stay vigilant. For continuation of Uptrend, we need MACD to point up with dark green bar prints.

STOCH has crossed bearish as well. If we cross bearish below the 80 lvl. This can lead to further bearish price action. For continuation of uptrend, we need a Bullish cross and to stay ABOVE 80 lvl.

WE can move sideways or continue a pullback for weeks to couple months even.

I will be looking to add to my positions as this continues. Keep an eye on further updates.

Note

Been a while since an UPDATE.

Been watching HOOD ever since we've pullbacked.

Notice this current move on 1 day is similar to a previous move looking left.

If you notice the previous move (pullback) into consolidation lasted roughly 48 days.

21 EMA (purple) crossed below 50 SMA (Green), before crossing UP into a Golden cross and continuing the rally.

We had a couple days of Support test on the Moving Averages.

We then Gapped up, tested and Confirmed Support on the consolidation zone and never looked back.

RSI at that time also showed consolidation signs, before breaking out and signaling the rally up.

NOTICE NOW AT CURRENT PRICE ACTION.

Last 3 days we've been testing Support on top of both 21 EMA and 50 SMA.

We are also 41 days into this pullback/ consolidation.

Key levels to watch is:
1st level is Support at 17.50. If we break look to,
Support at roughly 16.40$ lvl

An area to take positions is at these current levels with stop loss just below the 2 MOving Averages (this is not financial advice). Just an opinion and my strategy.

Resistance at roughly 18.50
Decisive break and confirmation ABOVE 19.20 is key as well.

Our RSI is also attempting to breakout of the consolidation zone highlighted.

Note

EARNINGS TODAY

Important to protect yourself for any post-market moves.

That can be reducing your position, setting stop losses and more.

Extra cautious especially with tech companies like SHOP, DASH, APPN had shown positive technicals that contradict the sudden fall in price.

Note

Positive reaction so far 10 minutes after Market Close.

Fundamentals must be good.

This will influence Technical developments. Will need to see if it followed to the t the previous pattern i compared with.

Will be looking for confirmation of signals mentioned ABOVE.

Note

19.20 is MAJOR Resistance so we need to see the interaction at that level.

Note

We've been severely rejected from the 19.20 lvl. With a massive Engulfing bearish candle today.

Not looking good at all. But still a little time to redeem the selloff

Might take longer than anticipated for our next UP rally.

Note

Things shifting on HOOD on 1 day timeframe

We have made our way to test SUPPORT on the trendline we broke out of.

We would need to maintain SUPPORT here or risk moving back to the bottom of Consolidation range.

Also note STOCH and MACD have printed BEAR signals.

Which may support further downside.

Demand weakness exists.

Lets keep observing. But im waiting for things to cool off.

Overall trend however is still an UPTREND until proven otherwise.

First warning to assess the bigger picture trend would be a break down from consolidation range highlighted.

Note

Update on the 1 week.

We have a topping tail candle on 1 week timeframe. We have been rejected from the 19.20 lvl.

Weekly developments are extremely powerful and can shift trends for weeks to months.

Expect a test of Support on 21 EMA and around the 15.40 lvl. Key is to look for signs of confirmation of support.

If at the end of todays candle close we see these highlighted signals to persist. We need to get on defensive for we may get better buy opportunities down the line.

So RSI is flashing a potential Lower low at todays close.
This will signal a bearish shift.

STOCH RSI is Bearish also indicating that it will probably continue below 20 lvl to reset as Oversold.

MACD also looking like it will cross BEARISH.

these 3 signals caution a protective stance and puts me in the mindset to brace for further declines for as long as BEARISHNESS is flashing in these indicators.

This should not be seen as a negative but rather an opportunity to add to positions once signals showcase a BUY.

Till that moment, lets continue to observe.

Note

UPdate for HOOD on 1 day timeframe.

Last week we were able to break above the Short term resistance trendline highlighted.

Price is now Back ABove:
$19.20
50 SMA
21 EMA

This decisive move ABOVE has also shifted the 21 EMA to curve up and looks like we are about to Cross above 50 SMA.

If this occurs it is known as a GOlden cross.

Look left to the previous golden cross that occured between 21 EMA and 50 SMA.
It lead to our previous rally to $20.00.

NOtice also how we moved sideways before starting our rally for roughly 56 days.

WHen i measured this current sideways move, it came out to be few days short of 56.

Do we continue up the next couple days to match the previous move?

Are we repeating the previous move to the T? If we maintain ABOVE 19.20. Its very possible we do repeat it. Markets do move in patterns so this was an interesting observation and something to keep in mind.

STOCH RSI is also moving similar. We are above the 80 lvl. It was also Above the 80 lvl during our previous GOlden Cross.

MACD was also crossed Bullish and Above 0 lvl. We are now ABOVE the 0 lvl, crossed bullish.

The question im asking is, do we get a rally thats similar to the intensity of the previous rally from $11 to $20.?

I think its very possible. And this can be leading to our move to $35.00.

Watch for more updates.

SafofAllTrades

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