Robinhood Stock Jumps 4.4% to $98.70 as Technicals Signal Bullish Momentum

Robinhood Markets (HOOD) demonstrated robust momentum in the most recent session, advancing 4.40% to close at $98.70 and extending its two-day gain to 8.14%. This analysis employs multiple technical frameworks to evaluate the stock's trajectory, integrating key indicators and probabilistic interpretations.
Candlestick Theory
The recent price action reveals a significant bullish reversal pattern. On July 8, HOOD formed a hammer candle (low: $90.70, close: $91.27) after a 2.34% decline, signaling exhaustion of selling pressure. This was followed by two consecutive bullish candles closing near session highs, validating reversal sentiment. The $90.70 level now establishes critical near-term support, while resistance emerges at the recent swing high of $100.88 (July 2). A decisive close above $100.88 may trigger bullish continuation.
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages exhibit a bullish alignment, confirming HOOD's uptrend. Current price action positions the stock above all key moving averages, with shorter-term averages trending above longer-term ones—a classic "golden cross" configuration. Specifically, the 50-day MA ($78.20) maintains its position above the 100-day MA ($68.50) and 200-day MA ($55.80). This hierarchy suggests sustained upward momentum, though a close below the 50-day MA would warrant trend reevaluation.
MACD & KDJ Indicators
The MACD (12,26,9) recently generated a bullish crossover, with the MACD line surpassing the signal line after a brief dip into negative territory. Concurrently, KDJ readings show the %K line (79) crossing above %D (72) from oversold territory, confirming accelerating upward momentum. While these signals suggest near-term strength, the KDJ's approach toward overbought levels (KDJ > 80) implies potential consolidation. The MACD histogram's expansion reinforces bullish bias but warrants monitoring for divergence.
Bollinger Bands
Volatility expanded notably during the July 8–10 rebound, with price surging from the lower band toward the upper band (20-day SMA: $92.40, ±2σ bands: $86.20–$98.60). The close near the upper band ($98.70) indicates short-term overbought conditions. However, the bands' widening after a contraction phase in late June supports the sustainability of the breakout. A consolidation period may develop to absorb overextension.
Volume-Price Relationship
Volume trends reveal nuanced signals. The July 2 rally to $100.88 occurred on exceptional volume (113.2 million shares), suggesting distribution near highs. Subsequent selling climaxed on July 8 with elevated volume (59.8 million shares), potentially indicating capitulation. While the recent rebound volumes (42.2M and 48.7M shares) are lower than distribution peaks, they exceed the 30-day average of 45.5 million shares, validating price recovery. Sustained upside requires volume expansion above 60 million shares on new highs.
Relative Strength Index (RSI)
The 14-day RSI (68) approaches overbought territory (>70) but remains below extreme levels. Current RSI positioning reflects recovering momentum after briefly testing neutral levels (42) on July 8. Historically, HOOD's RSI has peaked above 80 during strong rallies (e.g., February 13: 89, June 2: 82), implying current readings may not yet constitute exhaustion. Traders should note that RSI values above 70 could precede short-term pullbacks in trending markets.
Fibonacci Retracement
Using the recent swing high ($100.88, July 2) and swing low ($90.70, July 8), key Fibonacci levels are identified: 61.8% ($97.20), 50% ($95.79), and 38.2% ($94.59). The current close ($98.70) exceeds the 61.8% retracement and approaches the 78.6% extension level ($98.70), indicating strong recovery momentum. The $94.59–$95.79 zone now becomes critical support. A close above $100.88 would invalidate retracement dynamics and signal trend resumption.
Confluence & Divergence Notes
Confluence appears at $94.50–$95.80, where the 38.2% Fibonacci level, 20-day SMA, and swing highs from July 3–7 converge, creating robust support. Notably, a minor divergence exists between RSI and price: the July 2 high ($100.88) coincided with RSI at 82, while the current rebound toward similar prices occurs at RSI 68, suggesting moderated momentum. However, MACD and volume validation of the rebound mitigate this concern. The prevailing technical alignment leans bullish, though overbought oscillators and Fibonacci resistance at $98.70–$100.88 may trigger near-term consolidation before potential breakout attempts.