HOOD Breaks Out: Eyes on $84–95 as Momentum Surges Above $70If HOOD holds above $70, momentum can carry it to $84–85 in the short term, and as high as $95 if the rally becomes euphoric — but any breakdown below $70 likely resets the move.
1. Price Action – Clean Breakout
Price surged above a major resistance level around $65.39, which had previously capped price in late March. The breakout candle is strong, impulsive, and supported by volume, suggesting institutional follow-through.
2. RSI – Overbought Territory
RSI is 78.06, a red flag for short-term exhaustion. While strong trends can keep RSI over 70 for extended periods, moves like this often lead to:
Sideways digestion
Quick shakeouts
Potential for bearish divergence if price pushes higher but RSI rolls over
3. MACD – Elevated and Peaking
MACD lines are still bullishly stacked, but the histogram is flattening. We may be nearing a momentum apex — any softness in price could trigger a MACD rollover, especially on this lower timeframe.
4. Volume – Legitimate Strength
Volume on this breakout is clearly elevated, which confirms this is not a false move — at least not yet. Buyers are showing up, and that raises the bar for sellers to reclaim control.
Summary: Breakout Confirmed, But Cooling Risk Rising
HOOD has launched through resistance with conviction, but both RSI and MACD suggest this leg may be nearing exhaustion — watch for follow-through or failure in the next two sessions.
Where can this go?
Fibonacci Extension (From March Low to May High)
Using:
Swing low (March): ~$35
Swing high (May): ~$65.39
Pullback low (May 23rd): ~$60
Fib Extensions from this leg:
1.0x = $65.39 (already cleared)
1.618 = ~$84.27
2.0 = ~$95.39
That gives us a confluence zone at:
$84–85 (1.618 Fib + Measured Move)
$95–96 (2.0 Fib — extended run)
Bullish on this one
