Robinhood Stock Jumps 5.28% as Technicals Signal Bullish Reversal

Robinhood Markets (HOOD) concluded the latest session with a notable 5.28% gain, extending its rally to two consecutive days and accumulating a 5.47% advance over this period, closing at $111.23.
Candlestick Theory
Recent price action shows a promising reversal pattern. The August 4th session formed a long-legged bullish hammer at $97.15, coinciding with significant volume expansion. This initiated a recovery, culminating in a strong bullish engulfing candle on August 7th ($107.4 low to $112.63 high) that engulfed the prior three sessions. Immediate resistance is now evident at $112.63 (August 7th high), with critical support established at $107.4 (August 7th low), aligning with the psychologically important $105 zone previously tested on August 6th. Key historical support lies near $100, a level where multiple major lows have formed.
Moving Average Theory
Calculated averages reveal a robust uptrend. The 50-day moving average resides near $92, the 100-day near $80, and the 200-day near $70. Price remains decisively above all three major averages, confirming a powerful bullish structure. The consistent order (price > 50DMA > 100DMA > 200DMA) signifies a robust intermediate-to-long-term uptrend. Recent dips towards the rapidly rising 50DMA ($92-$95 range) have consistently acted as strong buying opportunities.
MACD & KDJ Indicators
The MACD histogram has recently crossed above its signal line after a period of consolidation near the zero line, confirming renewed positive momentum following the early August pullback. KDJ oscillators reflect constructive positioning: the J-line (most sensitive) recently entered overbought territory (>80) on August 7th, indicative of strong upward pressure. While this suggests near-term strength, it warrants monitoring for potential short-term exhaustion signals. The bullish MACD crossover reinforces the KDJ's signal of regained momentum.
Bollinger Bands
Bollinger Band behavior signals ongoing strength. Price closed near the upper band ($112.63) on August 7th, and bands have expanded notably during the recent ascent, highlighting increasing volatility and directional conviction. While extended proximity to the upper band occasionally precedes minor pullbacks, the strong expansion phase significantly diminishes the likelihood of an immediate major reversal. The breach of the mid-band ($105-$106 area) during the August 4th hammer candle marked the shift from consolidation to renewed bullish momentum.
Volume-Price Relationship
Volume trends offer nuanced signals. The powerful rebound starting August 4th witnessed strong volume accumulation ($4.82B on Aug 4th, $4.9B on Aug 7th), validating the bullish reversal. However, the subsequent days (Aug 5th, Aug 6th) displayed lower volume on price consolidation, which is generally acceptable. The notable exception was the sharp decline on August 1st on extremely heavy volume ($7.63B), signaling significant distribution pressure at that level. This divergence—heavy volume on large down days versus relatively lighter volume on consolidation days—warrants caution regarding the sustainability of very rapid advances, even as overall volume during key recovery days supports the uptrend.
Relative Strength Index (RSI)
Current RSI (14-period calculation, interpolating the averages) sits around 62, up from a dip towards 50 during the early August pullback. It resides comfortably within neutral territory, avoiding the overbought zone (>70) and leaving ample room for further upside potential. The rise aligns with the recent price gain. While not signaling over-extension currently, a sharp move above 70 would indicate strengthening momentum but may also flag short-term overheating risks inherent in rapid price escalations.
Fibonacci Retracement
Applying Fibonacci retracement to the recent corrective swing (High: $113.44 on July 18th - Low: $93.36 on August 1st) identifies critical levels. The 50% retracement lies near $103.40, and the 61.8% retracement rests near $106.96. The price convincingly reclaimed the 50% level ($103.40) on August 4th and subsequently surpassed the 61.8% level ($106.96) in the August 7th rally, closing solidly above it at $111.23. This break above the 61.8% retracement is a strongly bullish technical signal, suggesting the prior downtrend has been invalidated and the path of least resistance is higher. Key upside targets now align with the 100% extension level ($113.44, the prior high) and beyond.
Confluence and Divergence Summary
Significant confluence supports a bullish bias near-term. The price holding above major moving averages, the MACD bullish crossover, the KDJ reflecting strong momentum, the Bollinger Band expansion combined with price hugging the upper band, and the break above the 61.8% Fibonacci retracement collectively indicate strength. Furthermore, the RSI not yet being overbought suggests room for potential gains. The primary area of divergence centers on volume. While strong volume validated the key reversal days (Aug 4th and Aug 7th), the lower volume on the interim consolidation days and the extreme volume of the August 1st sell-off introduce a note of caution regarding buying exhaustion during intense upward spikes. Resistance is firmly established at $112.63 (August 7th high), with major resistance at $113.44 (July high). Support is layered at $107.40 (Aug 7 low), $105.65-$106.00 (recent close/psychological level), and $100-$102 (major historical and moving average support zone).