Robinhood Stock Drops 5.4% to $102.92 Amid Bearish Technical Signals

Candlestick Theory
Robinhood Markets (HOOD) declined 5.40% in the most recent session, closing at $102.92 after trading between $102.81 and $109.27. This marks the third consecutive bearish session, forming a short-term downtrend pattern. Key resistance is identified near $115.00 (August 18-19 highs), while immediate support rests at $102.81 (today’s low). A breakdown below $102.81 may target psychological support at $100.00, aligning with the July 30 low of $99.70. The August 22 bullish candlestick (high: $111.88, close: $109.32) remains a significant swing high, now acting as resistance.
Moving Average Theory
The 50-day moving average (MA) is currently at $105.60, the 100-day MA at $96.20, and the 200-day MA at $76.80. Today’s close ($102.92) sits below the 50-day MA, signaling bearish momentum. A decisive cross below the 100-day MA ($96.20) could accelerate selling pressure. Longer-term strength persists as prices remain above the 200-day MA ($76.80), but the lack of alignment between short-term and long-term MAs reflects trend indecision.
MACD & KDJ Indicators
The MACD (12,26,9) shows a bearish crossover, with the MACD line below the signal line and histogram in negative territory. This confirms weakening momentum. The KDJ oscillator (14,3,3) has %K (23.1) and %D (31.4) both in oversold territory (<30), signaling potential exhaustion in downward momentum. However, absent bullish confirmation from MACD, the KDJ oversold signal lacks confluence.
Bollinger Bands
Bollinger Bands (20-day, 2σ) have contracted to a width of $8.40, reflecting reduced volatility after August’s $99–$117.46 range. Today’s close ($102.92) penetrated the lower band ($103.50), typically signaling oversold conditions. However, consecutive closes below the lower band may indicate sustained downside momentum. Band contraction preceding this breakdown suggests a volatility expansion phase may be underway.
Volume-Price Relationship
Volume surged to 34.95M shares during today’s decline, exceeding the 30-day average of 37.8M. This high-volume sell-off validates bearish conviction. Notably, the August 22 rally to $111.88 occurred on 39.92M shares, while the August 19 plunge (-6.54%) saw 56.52M shares. Volume confirms resistance near $111–$112 and support near $99–$100 as critical zones.
Relative Strength Index (RSI)
The 14-day RSI is at 28.4, entering oversold territory (<30). Historically, RSI readings below 30 (e.g., July 8 at 27.8, June 8 at 29.1) preceded short-term bounces. However, RSI can remain oversold in strong downtrends, and today’s bearish close amplifies this risk. Divergence is absent as RSI aligns with the price’s lower lows.
Fibonacci Retracement
Using the June 20 low ($74.39) and August 19 high ($117.46), key retracement levels are established:
- 38.2%: $101.50
- 50.0%: $95.93
- 61.8%: $90.35
Today’s close ($102.92) hovers near the 38.2% support ($101.50). A sustained break below this level may trigger a slide toward $95.93 (50% retracement).
Confluence and Divergence
Confluence exists between Bollinger Band support ($103.50), Fibonacci 38.2% ($101.50), and psychological support at $100.00. Bearish confluence is evident in MACD, volume-backed selling, and price trading below key MAs. A significant divergence occurs between KDJ’s oversold signal and unconfirmed MACD weakness, reducing its reliability.
Conclusion
Robinhood Markets shows clear bearish momentum, validated by high-volume selling, breakdowns below key MAs, and oversold-but-unconfirmed RSI/KDJ readings. The $101.50–$102.81 support zone is critical; failure here may accelerate declines toward $95.93. While oversold conditions suggest possible consolidation, a reversal requires reconquering the 50-day MA ($105.60) with volume confirmation. Traders should monitor $101.50 for potential inflection.