Robinhood Stock Surges 8.7% In 3 Days As Bullish Signals Converge Near $117 Resistance

Candlestick Theory
Robinhood Markets (HOOD) exhibits a robust three-day bullish momentum, closing at $114.63 on August 8, 2025, after gaining 8.70% over this period. The daily candles formed consecutive white bodies with higher highs and higher lows, indicating sustained buying pressure. A notable bullish engulfing pattern emerged on August 4 when a long green candle ($97.15–$106.79) eclipsed the prior day’s red candle, signaling reversal potential after the August 1 sell-off. Key resistance is established near the all-time high of $117 (August 8 intraday peak), while support rests at $110.90 (August 8 low). A break above $117 could trigger further upside, though profit-taking near this level remains plausible given the recent vertical ascent.
Moving Average Theory
HOOD’s short-term moving averages reflect strengthening bullish momentum. The 50-day SMA ($95.20) recently crossed above the 100-day SMA ($89.40), confirming a mid-term uptrend. Notably, the price trades well above all three major averages (50-day, 100-day, 200-day), with the 200-day SMA ($68.30) serving as a foundational long-term support. The ascending alignment of these averages—price > 50-day > 100-day > 200-day—suggests a durable bullish trend. However, the rapid 38% surge from July’s $83.03 low risks a short-term pullback to test the 50-day SMA as mean reversion support.
MACD & KDJ Indicators
The MACD (12,26,9) shows a bullish configuration, with the histogram expanding for five consecutive sessions and the signal line maintaining its uptrend since mid-July. This aligns with strong upward momentum but hints at potential exhaustion if divergence develops. Meanwhile, the KDJ oscillator registers an overbought signal, with the K-line (92) and D-line (88) both above 80. While this suggests near-term overheating, the sustained upward slope of the J-line (100) indicates persistent buying interest. A bearish crossover in KDJ or MACD convergence would warrant caution for a corrective phase.
Bollinger Bands
Heightened volatility is evident as HOOD’s price hugs the upper Bollinger Band ($113.20) after the bands expanded sharply during the August 4–8 rally. This expansion followed a prolonged squeeze in late July, which typically precedes directional breakouts. The current position near the upper band implies overextension, increasing susceptibility to short-term reversion toward the 20-day SMA midline ($102.70). Traders should monitor band width contraction for volatility normalization signals.
Volume-Price Relationship
Volume patterns validate HOOD’s bullish move. The August 4 breakout surged 51% above its 30-day average volume, confirming institutional participation. Although subsequent days saw lower volume, the August 8 close above $114 occurred alongside above-average turnover (41.6M shares), supporting trend sustainability. Notable accumulation occurred at $93–$98 (August 1), which now serves as major volume-based support. A close below $105 on accelerating volume would undermine the uptrend’s integrity.
Relative Strength Index (RSI)
The 14-day RSI reads 82, deeply entrenched in overbought territory. Historically, HOOD’s RSI peaks above 80 have preceded 5–8% pullbacks within five sessions (e.g., March 2025, July 2025). While such conditions don’t necessarily reverse trends, they heighten vulnerability to profit-taking. Traders should view this as a warning for potential consolidation, though the absence of bearish divergence preserves the core uptrend’s credibility.
Fibonacci Retracement
Applying Fibonacci to the June–July decline (swing high: $113.44 on July 18; swing low: $93.36 on August 1) reveals strategic levels. The price has convincingly breached the 100% extension level ($113.44), converting prior resistance into support. Subsequent upside targets include the 127.2% ($118.80) and 161.8% ($126.20) retracements. Downside cushions emerge at $106.30 (76.4% retracement) and $101.70 (61.8%), coinciding with volume support and the 50-day SMA. This confluence strengthens $101.70–$106.30 as a high-probability accumulation zone should retracements occur.
Confluence and Divergence Observations
Confluence is evident between Fibonacci ($113.44), psychological resistance ($117), and Bollinger Band resistance ($113.20), making $113–$117 a critical supply zone. The RSI’s overbought signal aligns with KDJ’s extreme readings, reinforcing near-term exhaustion risks. However, no significant bearish divergence exists: MACD, SMA alignment, and volume continue supporting the primary uptrend. A decisive close above $117 with volume expansion could unlock the next Fibonacci target ($118.80), while failure to hold $110.90 may trigger profit-taking toward $106.30. The data suggests continued bullish bias post-consolidation, with volatility management being prudent.