Robinhood Gains 3.58% as Technical Indicators Signal Bullish Momentum

Robinhood Markets (HOOD) has experienced a 3.58% increase in the most recent session, extending its upward momentum for two consecutive days with a cumulative gain of 4.79%. The price action suggests a short-term bullish bias, with the stock forming higher highs and higher lows over the past week. Key support levels can be identified at recent intraday lows, such as the December 15 close of $115.26 and the December 12 close of $119.50, while immediate resistance appears near the December 19 high of $122.96. A break above this level could target the next psychological barrier at $125, aligning with a prior peak in mid-November.
Candlestick Theory
The recent price action exhibits a bullish continuation pattern, with the stock forming a "higher high, higher low" structure over the past two weeks. A notable support level is confirmed at $115.26, where the price rebounded sharply on December 15 following a prior rejection on December 12. Resistance is clustered between $122.96 and $125, with the December 18 high of $124.25 acting as a near-term ceiling. A potential bearish divergence is observed in the December 17 session, where the price closed lower despite a wider range, suggesting caution ahead of key resistance levels.
Moving Average Theory
Short-term momentum is reinforced by the 50-day moving average (approximately $120–$122), which remains above the 200-day MA (~$110–$115), indicating a bullish trend. The 100-day MA (~$118) further supports the current price action, with HOOD trading above all three major moving averages. However, the 200-day MA may act as a dynamic support if the stock faces a pullback, given its historical role as a trend filter. The alignment of short-term and long-term moving averages suggests a continuation of the uptrend, though a close below the 50-day MA would signal a potential shift in sentiment.
MACD & KDJ Indicators

The MACD histogram has shown positive divergence over the past five days, with the line crossing above the signal line on December 18, confirming bullish momentum. The KDJ (Stochastic RSI) indicator, however, has entered overbought territory (K-line above 80), suggesting a temporary pause in the rally could be imminent. A bearish crossover in the KDJ would likely precede a pullback, but the MACD’s strength implies that any correction may be shallow. The confluence of MACD bullishness and KDJ overbought conditions highlights a potential inflection point, where a breakout above $125 could validate continued strength.
Bollinger Bands
Volatility has expanded in recent sessions, with the bands widening from a contraction observed in mid-December. The current price of $121.35 sits near the upper band, indicating high volatility and a potential continuation of the upward trend. A move beyond the upper band would confirm a breakout, while a retest of the lower band (~$115–$116) could offer a buying opportunity. The recent contraction phase (December 16–17) suggests a possible catalyst for the current rally, with the bands now acting as dynamic guides for price targets.

Volume-Price Relationship
Trading volume has surged in the past two sessions, with 27.58 million shares traded on December 19 and 24.27 million on December 18, validating the recent price gains. This volume surge aligns with the bullish candlestick patterns and MACD signals, suggesting strong institutional participation. However, the volume on December 19 (334 million dollars) is marginally lower than the December 17 surge (433 million dollars), hinting at a potential exhaustion of buying pressure ahead of the $125 resistance level. A sustained volume decline during an uptick in price could signal a weakening trend.
Relative Strength Index (RSI)
The 14-day RSI has entered overbought territory (~75–80), consistent with the KDJ’s overbought signal. While this warns of a possible near-term correction, the RSI has not yet formed a bearish divergence relative to price, which remains a key caveat. A drop below 60 would suggest a resumption of the medium-term uptrend, whereas a move above 80 without a corresponding price high could indicate a topping pattern. The RSI’s alignment with the MACD’s bullish momentum underscores the need for caution, as overbought levels often precede sharp corrections in volatile stocks like HOOD.
Fibonacci Retracement
Applying Fibonacci levels to the December 12 low ($119.50) and the November 10 high ($135.88), key retracement levels include 23.6% at ~$129.50, 38.2% at ~$126.50, and 50% at ~$122.70. The current price is approaching the 50% retracement level, which could act as a critical support/resistance zone. A break above the 38.2% level would target the 23.6% retracement at $129.50, aligning with the November 5 high. Conversely, a failure to hold above $122.70 could trigger a retest of the 61.8% retracement at ~$118.50, where the December 15 close provided prior support.
The confluence of bullish moving averages, MACD strength, and Fibonacci support at $122.70 suggests a high probability of continued upward movement, provided volume remains robust. However, the overbought RSI and KDJ readings necessitate vigilance for a short-term pullback, particularly if the stock faces resistance at $125. Divergences between volume and price, or between RSI and price action, could signal a shift in momentum, but the overall technical setup remains favorably aligned for a continuation of the uptrend.