Robinhood Getting Bullish Rating And Also Making Bullish Candles

Robinhood Markets Inc. is an American stockbroker and financial services company. It has its headquarters in Menlo Park, California. It provides features like commission-free trades of stocks, ETFs, and cryptocurrencies on its trading platform which is accessible by its mobile app introduced in 2015. It is a public company and is traded as HOOD listed on the NASDAQ exchange. The current CEO of the company is Vladimir Tenev.

The average trading volume of the HOOD stock is 8.74M(3 months) and the company makes a loss of $0.93 on each share. The PE ratio of the share is also negative resulting in -10.91. It shows the low demand for the HOOD share. In the last 52 weeks, Robinhood Markets Inc. hit a low price of $7.57 and the highest price of $13.23.

The HOOD share has a beta of 1.56, which makes the Robinhood Markets Inc. share less volatile. It also indicates that the HOOD share moves less than the market as a whole. The gross profit for the company has advanced by 61.7% in Q2 2023 year-on-year. It has followed an advance of 4.7% in gross margin resulting in 91.2%.

Robinhood Markets Inc. Stock Performance Analysis

Robinhood Markets has reported a decline of $2.66B in debt in the year 2022. It also has reported a revenue of $1.38B in the year ending 2022. It has a high operating expense of 2.109B following a negative profit margin of -74.38%. For Q2 2023 the net cash of the company has declined by 2.2% resulting in $5.83B.

Performance Analysis of HOOD Stock

The experts are neutral on the HOOD stock price as the company is underperforming. It has been unable to meet the estimates for the EPS and revenue over the last four quarters but has outperformed in the recent quarters. The company surprised the investors by outperforming the EPS expectations by 326.83%.

HOOD Stock Technical Analysis

The HOOD stock price has been following a downtrend for a long time. The following downtrend in the stock has led to the formation of a dynamic trendline. HOOD share price has recently broken out above the dynamic trendline making a bullish candlestick pattern. This behavior of the stock price represents that the buyers are entering the stock.

The 50-day and the 200-day EMA on the daily charts have made a death cross. HOOD stock price is also trading below the EMAs following a downtrend.

The RSI for HOOD stock is taking support at the oversold zone. Despite the overall trend being negative if the RSI manages to break above the 50-level, we can witness some upside in the HOOD stock.

Conclusion

Robinhood Markets Inc. has not performed well financially over the last few years but has managed to reduce its debt. The HOOD stock is following bearish EMA and RSI on the charts. HOOD stock price has broken out above the dynamic trendline. This indicates bullish behavior in the stock.

Therefore, if the HOOD stock breaks above the level of $11.50 then we can see higher levels of $13.20 the stock may continue to decline to lower levels.

Technical Levels

Support levels- $7.60 and $8.30
Resistance levels- $11.30 and $13.20

Disclaimer

The information provided in this article, including the views and opinions expressed by the author or any individuals mentioned, is intended for informational purposes only. It is important to note that the article does not provide financial or investment advice. Investing or trading in cryptocurrency assets carries inherent risks and can result in financial loss.