Robinhood Jumps 3.58% to $94.54 as Technicals Signal Bullish Reversal

Robinhood Markets (HOOD) gained 3.58% during the most recent session, closing at $94.54 on substantial volume of 41.47 million shares. This analysis evaluates the technical structure using multiple frameworks.
Candlestick Theory
Recent price action shows a potential bullish reversal pattern. The July 9 candle formed a decisive white body closing near its high after testing support around $91.25–$90.70 (July 7–8 lows), indicating demand absorption. This follows a bearish engulfing pattern on July 3 that triggered retracement from the $100.88 high. Key resistance resides at $98.04–$100.88 (July 1–2 swing high), while support holds near $90.70. The current session’s rejection of lower prices and close above $94 suggests buyers are regaining control.
Moving Average Theory
The 50-day moving average ($68.50) maintains an upward slope above the rising 100-day ($54.20) and 200-day ($45.50) averages, confirming the long-term bullish structure. Current price remains firmly above all three, though the 20-day EMA ($89.30) provided dynamic support during the recent pullback. Golden crosses between shorter and longer-term averages persist, supporting trend continuation probabilities. Sustained trading above $94 strengthens the near-term bullish case.
MACD & KDJ Indicators
MACD (12,26,9) shows a bearish crossover signal line occurring July 3, aligning with the price retreat, but the histogram is now contracting—suggesting waning downside momentum. Meanwhile, the KDJ oscillator (9,3,3) exited oversold territory (K-line=45, D-line=50) as the July 9 rally triggered a fresh bullish crossover. This emerging positive divergence between MACD (bearish but slowing) and KDJ (bullish impulse) may foreshadow momentum recovery if confirmed by price holding above $94.
Bollinger Bands
Bands expanded sharply during the July 2 rally to $100.88, reflecting high volatility, before contracting during the consolidation phase. Price recently touched the lower band near $91.25 before rebounding to close above the 20-day midline ($92), indicating regained short-term momentum. Bandwidth contraction to current levels suggests a volatility cooldown phase, often preceding directional resolution. The absence of close below the lower band supports bulls.
Volume-Price Relationship
Volume spikes validated key moves: the July 2 rally to $100.88 occurred on 113.2M shares (year’s highest volume), confirming institutional participation. The July 9 rebound saw 41.5M shares vs. prior sessions’ 49–60M, demonstrating conviction with above-average volume. Down days in early July showed incrementally lower volume, suggesting limited distribution. Volume profile generally supports the uptrend’s integrity.
Relative Strength Index (RSI)
The 14-day RSI (58) rebounded from near-oversold territory (35 on July 8), recovering toward neutrality. A bullish divergence emerged as price made a lower low on July 8 while RSI printed a higher low, foreshadowing the July 9 rebound. While not overbought (>70), RSI momentum is improving without extreme readings that often precede reversals. This aligns with other indicators signaling potential upside continuation.
Fibonacci Retracement
Applying Fibonacci to the April 9 low ($42.21) to July 2 high ($100.88): The 23.6% retracement at $87.03 underpinned the late-June consolidation, while the July 8 low ($90.70) found support just above the 38.2% level ($80.27). This shallow pullback implies robust trend strength. Key resistance is the 161.8% extension at $105.30, while 50% retracement support sits at $71.55—a level unlikely to test absent a major trend breakdown.
Confluence and Probabilities
Multiple indicators converge at the $90–$92 zone (candlestick support, Bollinger lower band, Fibonacci 38.2%), making it critical for trend preservation. The synchronized RSI divergence, KDJ bullish crossover, and volume-backed reversal increase probabilities for upside continuation toward $98–$101 resistance. A decisive close above $95 would further confirm bullish reactivation. The primary caution stems from MACD’s lingering bearish crossover—a divergence requiring resolution. Near-term risk appears skewed upward provided $90 support holds.