Hood wedge updateOnce again, the wedges I track tend to explode outside of the wedge, pump for 2-5 days, then give almost the entire pump back to the market. My plan was a mixture of swing trading and option selling.
-I locked in my August trade for about 50% total
-My September calls remain intact which have a safer strike price for volatility reduction
-I plan to keep my LEAPS and continue to sell safer covered calls against them.
-I think we bounce off 22.3$
HOOD trade ideas
40% Increase on the horizonLets keep it simple. We flipped the VAH into support and continue to build value above, next area to test is the VAL above 40% higher. A nice pump is incoming and keep in mind, if the crypto market is bullish so is Robinhood.
Stay focused.
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Robinhood Robinhood witnessed a strong rebound after forming a higher low at 21.72, to violate the last peak at 24.28, and the confirmation of this breakout by remaining above 24.28, will confirm the current uptrend, triggering further rises near 25.20 - 26.40 - 27.70 - 28.60 on short term.
The stop-loss lies below 22.75$.
the indicators are heading toward the positive side, which confirms the mentioned positive scenario.
The information and publications are not intended to be or constitute any financial, investment, commercial, or other types of advice or recommendations provided.
Hood contractionHOOD contracts leading into Aug 7 earnings. Note the bottoming stochastic RSI. I believe small caps are going to take control here after the recent bullish inflation print. I have a rather large weight bet in my smaller account on HOOD with a complex spread. My target leading into Aug 7 is 25-27$
The Setup (I noted that hood was the slowest to move for my option watchlist last Friday, so I took advantage)
2026 18$ LEAPs for continuous exposure to price action
-These will allow me to sell low delta covered-calls if earnings pumps the price, or I can simply hold these for capital appreciation
8/16 25$ calls (riskiest part of trade)
-These are a cheap way to lever my bet but I have to watch for the 21 theta decay ramp
-The goal with these is to fully exit on a pre-earnings rally, waiting until Aug 7 will cause too much theta decay
9/20 24$ calls
-These allow me to continue potential intrinsic value with the lower strike, less theta decay and more chance to capture rising implied volatility
7/19 and 7/26 22$ cash secured puts
-Since I am so bullish on small caps and hood is so popular I went for high delta premiums, I am fine with getting assigned here but my entries were so good I will likely capture most of the premium on these
Nothing but airRobinhood IPO'd during a period of dovish monetary policy and high retail speculation. It shortly after giga-nuked as retail speculation wrapped up to find a bottoming range between $6-$12 for a period of 2 years. The volume shelves are actually insane.
Whats next?
Robinhood has broken out in orderly fashion, but has not seen a parabolic rise yet.
A old narrative will likely drive Robinhood into price discovery - Speculation on the return of speculation.
These trends play out faster each macro cycle.
Jun 21 17C
Robinhoodon the daily chart, HOOD witnessed a strong rebound after forming a new higher low at 16.22$, to violate the resistance level at 19.44$, after BofA double upgraded Robinhood (HOOD) to Buy from Underperform. then remaining above 19.44$, will push the stock to test the last major peak at 20.55$, which is the level that needs to be violated, to confirm the major uptrend, which will trigger further rises near 21.70$ - 22.35$ - 23.25$ on the short term.
the indicators are heading towards the positive side, which confirm the mentioned positive scenario
Up-trend stocks: ROBINHOODUp-trend stocks, Break accumulated Phase, Market Structure Shift and Break Market Structure.
Volume Profile shows accumulation as Normal Distribution.
When the price can break up, it is a Buy on breakout and Buy on dip point all the way by framing the trend line channel.
Story Support: Robinhood to acquire crypto exchange Bitstamp in $200M deal.
Multi-Month Consolidation EndingI certainly like this consolidation and chart pattern much more than the company itself but 24/7 trading may help the outlook of what's going on here. Another perceived tailwind may be declining CPI --> more money for retail to spend trading, even though we all know overall USD purchasing power continues to decline regardless of YoY CPI decreases.
Previously, there had been M&A rumors but that seems to have all but died down when SBF/FTX blew up. The DoJ seized 55 million shares of HOOD in January, so something else to keep in mind for this trade.
ROBINHOOD - Long Term Exponential PotentialROBINHOOD - Long Term Exponential Potential
HOOD as a less favored stock has been bottoming in price for over 2 years....I believe the GameStop saga coming to an end and their rich product suite along with major growth presents a potential exponential opportunity
✅ Exponential Return Opportunity:
The price fell 78% from $85 to $6.81 and since June 2022 has built out a bottoming base making three higher lows in price. Hood has the potential to 5x or 6x from current levels to ATH’s or fall 40% to the all time low. Its small market cap of $9.78B means it can increase in multiples easier than larger brokerage firms such as Charles Schwab (bought TD Ameritrade) and Vanguard Group who are both in the trillions for market capitalization.
✅ Entering New Markets:
At the end of Q3 2023 HOOD entered UK Market offering their brokerage services there. The company is expanding it reach.
✅Aggressive Customer Acquisition Strategy:
There has been a surge in demand for their 3% IRA and old 401k rollover match which offers better interest returns than many of the other large IRA providers in the market. An aggressive marketing campaign has resulted in a 3 week backlog in applications (growing pains). These offerings require people to hold the funds in their IRA's in Robinhood for 5 years, and also be a Robinhood Gold member for 1 year. This will be great for retention of Assets Under Management (AUM) and could result in a sticky customer base.
✅ HOOD Credit Cards are coming:
The CEO has hinted at a release of Credit cards with zero fees to align with HOOD’s mission to democratize finance which may become available in early 2024. Limits may be based on income, not credit score, aiding poor credit access.
✅ Bad Press Dissipating:
Robinhood faced significant consequences for the GameStop scandal, including a fine of $57 million from FINRA and a class action settlement payment of $9.9 million. They have also settled another what appears to be potentially one of the FINAL lawsuits with Massachusetts for $7.5 million (Jan 2024). Some would argue that this closes off the GameStop event, whereby HOOD disabled long entries for GameStop stock to halt a rapidly rising short squeeze. Some people argue that HOOD had no option at the time but to halt trading as this was demanded by Citadel - Robinhood's market-maker partner (whose business would have taken a significant hit if the short squeeze was not averted). You have to wonder though, could this overreach occur again? And you have to wonder if the halt was not put in place could it have led to bankruptcy's which would have impacted a lot more general customers. HOOD is overhauling its digital engagement practices and intends to take steps to increase cybersecurity as part of its legal settlements. I don't agree with what happened however as a trader, with my trader lens on, bad news often presents great buying opportunities.
SUMMARY
The GameStop bad news event appears to be gradually dissipating and given the volume of customers onboarding, the expansion and growth the company is demonstrating, the new products being brought to market and how the chart appears to be basing over 2 years whilst establishing two higher lows, its looking like the bottom may be in. There is an exponential growth opportunity for all the long winded traders out there, strong support of POC and we recently got a bounce off the 200 day moving average on 16th Jan. A long term exponential trading opportunity is there to be had.
Thanks for coming along
PUKA
Robinhood waking up bigtime Macro signs BULLISHHi 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.
HOOD - BULL FLAG BREAKOUTAs of the middle of February HOOD broke out from a 2 year long Trading Channel and immediately began to form a 3 month long BULL FLAG Formation that as of this past Friday February 17th it broke out from closing at $20.09 for an increase of $2.19 or 12.23%. Their recent quarterly Financials were also very good for the 5th quarter in a row with the Earnings Report significantly improved at +211.02% as well as their revenues up $618 million or 11.91%. The price target as I have shown on the chart is $29.29 or approximately 25% from the current price.
Robinhood Surges 12.23% On Analyst UpgradeRobinhood Markets ( NASDAQ:HOOD ) has surged past an alternative buy point, adding to its significant gains. The online trading platform reported earnings and sales that exceeded Wall Street's estimates due to a surge in retail cryptocurrency trading. Robinhood ( NASDAQ:HOOD ) earned 18 cents a share, a significant shift from a year-ago loss, and revenue surged 40% year over year to a record $618 million. Analysts expect its first-ever full-year profit in 2024 at 78 cents per share. The company's CEO, Jason Warnick, stated that the company delivered significant revenue growth and margin expansion in Q1 and is focused on driving another year of profitable growth in 2024.
BofA Securities upgraded Robinhood stock ( NASDAQ:HOOD ), raising it from underperform to buy, with a new price target of 24, up from 14. In response, Robinhood stock ( NASDAQ:HOOD ) surged more than 11% in Friday afternoon trading.
The Relative Strength Index (RSI) is nearing a fresh high currently at 63.98, indicating significant stock market outperformance that could pay off well for the stock.
HOOD Robinhood Markets Options Ahead of EarningsIf you haven`t bought HOOD before the previous earnings:
Then analyzing the options chain and the chart patterns of HOOD Robinhood Markets prior to the earnings report this week,
I would consider purchasing the 20usd strike price Calls with
an expiration date of 2024-9-20,
for a premium of approximately $2.22.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Technical Analysis: Robinhood Markets, Inc. (HOOD)Robinhood Markets, Inc. (HOOD) is currently trading at $19.95, up 11.45% from the previous close. This significant movement indicates strong bullish momentum. Below is an in-depth technical analysis to provide actionable insights.
Oscillators
Relative Strength Index (RSI): At 63.31, the RSI is in the neutral zone but approaching the overbought territory. A further move towards 70 could indicate overbought conditions, suggesting a potential reversal or consolidation.
Stochastic %K: With a value of 70.79, it also signals neutral, but close to overbought levels. This corroborates the RSI, hinting at potential overbought conditions soon.
Commodity Channel Index (CCI): At 254.93, the CCI is significantly above 100, indicating strong buying pressure and a potential overbought condition.
MACD Level (12, 26): Positive at 0.24 with a 'Buy' signal, suggesting bullish momentum is still strong.
Moving Averages
All key moving averages, including the 10-day, 20-day, 50-day, 100-day, and 200-day SMAs and EMAs, indicate a 'Buy' signal. The price is currently above these averages, reinforcing the bullish outlook.
EMA (10): 18.06 (Buy)
SMA (20): 17.58 (Buy)
EMA (50): 17.20 (Buy)
SMA (200): 12.68 (Buy)
Pivots
Pivot Point (P): 17.70
Support Levels: S1 at 15.25, S2 at 14.01
Resistance Levels: R1 at 18.94, R2 at 21.39
Valuation Ratios
Price to Sales Ratio: 6.56, relatively high, indicating the market expects high future growth.
Price to Cash Flow Ratio: 14.33, suggesting the stock is somewhat overvalued based on current cash flows.
Profitability Ratios
Return on Assets (ROA): -5.85%, indicating inefficiency in asset utilization.
Return on Equity (ROE): -17.93%, reflecting negative returns on shareholder equity.
Chart Patterns and Price Action
The latest candlestick shows a breakout above the upper resistance line of a consolidation pattern, indicating a continuation of the upward trend. The volume spike supports this breakout, suggesting strong buyer interest.
Speculative Price Targets
Short Term (1-2 weeks): The immediate target is $21.39, aligning with the R2 resistance level. If bullish momentum continues, this target could be reached.
Medium Term (1-2 months): The next significant target is $25.08 (R3), contingent on sustained bullish sentiment and favorable market conditions.
Trading Strategy
Long Position: Enter at the current price level ($19.95). Set a stop loss at $18.00 to mitigate downside risk. Target price: $21.39 (short term), $25.08 (medium term).
Short Position: Consider shorting if the price fails to hold above $18.00, with a stop loss at $20.00. Target price: $15.25 (S1), aligning with the first support level.
Conclusion
Based on the technical indicators, moving averages, and overall market sentiment, Robinhood Markets, Inc. shows strong bullish potential in the short to medium term. However, traders should monitor for any signs of overbought conditions and be prepared to adjust their positions accordingly.