HOOD trade ideas
ROBINHOOD - Long Term Exponential PotentialROBINHOOD - Long Term Exponential Potential
HOOD as a less favored stock has been bottoming in price for over 2 years....I believe the GameStop saga coming to an end and their rich product suite along with major growth presents a potential exponential opportunity
✅ Exponential Return Opportunity:
The price fell 78% from $85 to $6.81 and since June 2022 has built out a bottoming base making three higher lows in price. Hood has the potential to 5x or 6x from current levels to ATH’s or fall 40% to the all time low. Its small market cap of $9.78B means it can increase in multiples easier than larger brokerage firms such as Charles Schwab (bought TD Ameritrade) and Vanguard Group who are both in the trillions for market capitalization.
✅ Entering New Markets:
At the end of Q3 2023 HOOD entered UK Market offering their brokerage services there. The company is expanding it reach.
✅Aggressive Customer Acquisition Strategy:
There has been a surge in demand for their 3% IRA and old 401k rollover match which offers better interest returns than many of the other large IRA providers in the market. An aggressive marketing campaign has resulted in a 3 week backlog in applications (growing pains). These offerings require people to hold the funds in their IRA's in Robinhood for 5 years, and also be a Robinhood Gold member for 1 year. This will be great for retention of Assets Under Management (AUM) and could result in a sticky customer base.
✅ HOOD Credit Cards are coming:
The CEO has hinted at a release of Credit cards with zero fees to align with HOOD’s mission to democratize finance which may become available in early 2024. Limits may be based on income, not credit score, aiding poor credit access.
✅ Bad Press Dissipating:
Robinhood faced significant consequences for the GameStop scandal, including a fine of $57 million from FINRA and a class action settlement payment of $9.9 million. They have also settled another what appears to be potentially one of the FINAL lawsuits with Massachusetts for $7.5 million (Jan 2024). Some would argue that this closes off the GameStop event, whereby HOOD disabled long entries for GameStop stock to halt a rapidly rising short squeeze. Some people argue that HOOD had no option at the time but to halt trading as this was demanded by Citadel - Robinhood's market-maker partner (whose business would have taken a significant hit if the short squeeze was not averted). You have to wonder though, could this overreach occur again? And you have to wonder if the halt was not put in place could it have led to bankruptcy's which would have impacted a lot more general customers. HOOD is overhauling its digital engagement practices and intends to take steps to increase cybersecurity as part of its legal settlements. I don't agree with what happened however as a trader, with my trader lens on, bad news often presents great buying opportunities.
SUMMARY
The GameStop bad news event appears to be gradually dissipating and given the volume of customers onboarding, the expansion and growth the company is demonstrating, the new products being brought to market and how the chart appears to be basing over 2 years whilst establishing two higher lows, its looking like the bottom may be in. There is an exponential growth opportunity for all the long winded traders out there, strong support of POC and we recently got a bounce off the 200 day moving average on 16th Jan. A long term exponential trading opportunity is there to be had.
Thanks for coming along
PUKA
Robinhood waking up bigtime Macro signs BULLISHHi guys this is a MACRO analysis on Robinhood (HOOD). Macro meaning larger timeframe aka the 1 week in this instance.
Alot of stocks are down from their previous tops. Which means potentials for longterm gains for many names possible.
During the decline of assets, price action may create specific chart patterns that may signal the bottom.
For HOOD -> such a pattern was observed. We've been in this pattern since January 2022.
Making it a BIG DEAL. Acting like a pressure cooker if you will.
This pattern is known as the Rectangle pattern, better known as Consolidation or Consolidation zone.
Remember chart patterns must be traded on confirmation of a breakout. Its never a good idea to buy within chart patterns as experts say within chart patterns its a 50/50 chance. Therefore, probabilities increase once confirmation comes in.
We are currently in the process of trying to breakout.
I am now on full observation mode, as i will be looking to add.
This current move was initiated by a retrace to the golden FIB ratio at around 10.60$. We maintained support, allowing for our current UPTREND.
Notice also i have momentum indicators up.
STOCH RSI has crossed Bullish. This will allow for buying to commence.
MACD is also giving MACRO bullish signs, BULLISH CROSS ABOVE the 0 level and increasing size of the histobars. Major uptrends occur when MACD is crossed bullish above 0 level, you could even say Bull markets occur.
We will continue our Uptrend until Bearish crosses are seen.
Now lets look at the market structure above the consolidation zone. Notice how theres not much data above. Only a single sharp group of candles on the left. This shows no resistance exists above consolidation zone. This means price action above will cut through like butter to my 1st target zone at around $30-35.
NOW REMEMBER watch for confirmation of a breakout atleast on the 1 day but 1 week prefered.
I will be continously updating new information as needed.
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Thank you for taking the time to read my analysis. Hope it helped keep you informed. Please do support my ideas by boosting, following me and commenting. Thanks again.
Stay tuned for more updates on HOOD in the near future.
If you have any questions, do reach out. Thank you again.
DISCLAIMER: This is not financial advice, i am not a financial advisor. The thoughts expressed in the posts are my opinion and for educational purposes. Do not use my ideas for the basis of your trading strategy, make sure to work out your own strategy and when trading always spend majority of your time on risk management strategy.
HOOD - BULL FLAG BREAKOUTAs of the middle of February HOOD broke out from a 2 year long Trading Channel and immediately began to form a 3 month long BULL FLAG Formation that as of this past Friday February 17th it broke out from closing at $20.09 for an increase of $2.19 or 12.23%. Their recent quarterly Financials were also very good for the 5th quarter in a row with the Earnings Report significantly improved at +211.02% as well as their revenues up $618 million or 11.91%. The price target as I have shown on the chart is $29.29 or approximately 25% from the current price.
Robinhood Surges 12.23% On Analyst UpgradeRobinhood Markets ( NASDAQ:HOOD ) has surged past an alternative buy point, adding to its significant gains. The online trading platform reported earnings and sales that exceeded Wall Street's estimates due to a surge in retail cryptocurrency trading. Robinhood ( NASDAQ:HOOD ) earned 18 cents a share, a significant shift from a year-ago loss, and revenue surged 40% year over year to a record $618 million. Analysts expect its first-ever full-year profit in 2024 at 78 cents per share. The company's CEO, Jason Warnick, stated that the company delivered significant revenue growth and margin expansion in Q1 and is focused on driving another year of profitable growth in 2024.
BofA Securities upgraded Robinhood stock ( NASDAQ:HOOD ), raising it from underperform to buy, with a new price target of 24, up from 14. In response, Robinhood stock ( NASDAQ:HOOD ) surged more than 11% in Friday afternoon trading.
The Relative Strength Index (RSI) is nearing a fresh high currently at 63.98, indicating significant stock market outperformance that could pay off well for the stock.
Hood gonna pop. people like to gamba. volumes gonna go crazyRobin Hood is a legendary heroic outlaw originally depicted in English folklore and subsequently featured in literature, theatre, and cinema. According to legend, he was a highly skilled archer and swordsman.
HOOD Robinhood Markets Options Ahead of EarningsIf you haven`t bought HOOD before the previous earnings:
Then analyzing the options chain and the chart patterns of HOOD Robinhood Markets prior to the earnings report this week,
I would consider purchasing the 20usd strike price Calls with
an expiration date of 2024-9-20,
for a premium of approximately $2.22.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Technical Analysis: Robinhood Markets, Inc. (HOOD)Robinhood Markets, Inc. (HOOD) is currently trading at $19.95, up 11.45% from the previous close. This significant movement indicates strong bullish momentum. Below is an in-depth technical analysis to provide actionable insights.
Oscillators
Relative Strength Index (RSI): At 63.31, the RSI is in the neutral zone but approaching the overbought territory. A further move towards 70 could indicate overbought conditions, suggesting a potential reversal or consolidation.
Stochastic %K: With a value of 70.79, it also signals neutral, but close to overbought levels. This corroborates the RSI, hinting at potential overbought conditions soon.
Commodity Channel Index (CCI): At 254.93, the CCI is significantly above 100, indicating strong buying pressure and a potential overbought condition.
MACD Level (12, 26): Positive at 0.24 with a 'Buy' signal, suggesting bullish momentum is still strong.
Moving Averages
All key moving averages, including the 10-day, 20-day, 50-day, 100-day, and 200-day SMAs and EMAs, indicate a 'Buy' signal. The price is currently above these averages, reinforcing the bullish outlook.
EMA (10): 18.06 (Buy)
SMA (20): 17.58 (Buy)
EMA (50): 17.20 (Buy)
SMA (200): 12.68 (Buy)
Pivots
Pivot Point (P): 17.70
Support Levels: S1 at 15.25, S2 at 14.01
Resistance Levels: R1 at 18.94, R2 at 21.39
Valuation Ratios
Price to Sales Ratio: 6.56, relatively high, indicating the market expects high future growth.
Price to Cash Flow Ratio: 14.33, suggesting the stock is somewhat overvalued based on current cash flows.
Profitability Ratios
Return on Assets (ROA): -5.85%, indicating inefficiency in asset utilization.
Return on Equity (ROE): -17.93%, reflecting negative returns on shareholder equity.
Chart Patterns and Price Action
The latest candlestick shows a breakout above the upper resistance line of a consolidation pattern, indicating a continuation of the upward trend. The volume spike supports this breakout, suggesting strong buyer interest.
Speculative Price Targets
Short Term (1-2 weeks): The immediate target is $21.39, aligning with the R2 resistance level. If bullish momentum continues, this target could be reached.
Medium Term (1-2 months): The next significant target is $25.08 (R3), contingent on sustained bullish sentiment and favorable market conditions.
Trading Strategy
Long Position: Enter at the current price level ($19.95). Set a stop loss at $18.00 to mitigate downside risk. Target price: $21.39 (short term), $25.08 (medium term).
Short Position: Consider shorting if the price fails to hold above $18.00, with a stop loss at $20.00. Target price: $15.25 (S1), aligning with the first support level.
Conclusion
Based on the technical indicators, moving averages, and overall market sentiment, Robinhood Markets, Inc. shows strong bullish potential in the short to medium term. However, traders should monitor for any signs of overbought conditions and be prepared to adjust their positions accordingly.
hood long breakoutsl 18.40 target arround 28 (last move 10 dollars , breakout on good earnings being building up . good ep
Robinhood's Earning's Preview: Dissecting the Q1 2024 ResultsRobinhood ( NASDAQ:HOOD ) has achieved record revenues and profitability in Q1 2024, driven by growth in cryptocurrency, options, and equities trading. The company's earnings report for Q1 2024 showed a 40% increase in total net revenues, primarily driven by transaction-based revenues. Cryptocurrency trading revenues soared by 232% to reach $126 million, reflecting the growing popularity of this market among retail investors. Options trading also contributed significantly to transaction-based revenues, generating $154 million, a 16% increase compared to the previous year. Equities trading revenue increased by 44% to reach $39 million.
Robinhood's profitability metrics showed remarkable improvement, with a net income of $157 million for Q1 2024, compared to a net loss of $511 million in Q1 2023. Adjusting for non-recurring items, Robinhood's Adjusted EBITDA soared by 115% year-over-year to reach $247 million.
Robinhood's user base data showed a year-over-year increase of 810,000 Funded Customers, investment accounts, and assets under custody (AUC) reaching 24.9 million. The company's average Revenue Per User (ARPU) increased by 35% year-over-year to $104, demonstrating its ability to monetize its growing user base effectively. Robinhood Gold, the company's premium subscription service, also experienced substantial growth, with subscribers reaching a new high of 1.7 million, representing a 42% increase compared to the previous year.
Robinhood's Q1 2024 financial report showcased impressive growth and customer engagement, highlighting the company's strategic initiatives to drive growth and solidify its position as a leading financial services provider. The company has focused on expanding its product offerings, exploring new markets, and innovating its platform to cater to evolving user needs. Robinhood Gold, its premium subscription service, is a key driver of customer engagement and revenue growth. The company announced the launch of a 1% unlimited deposit boost for Gold subscribers and introduced the Robinhood Gold Card, a credit card exclusively for Gold subscribers.
Robinhood ( NASDAQ:HOOD ) has also expanded its offerings to recognize the growing demand for retirement planning tools, with the 3% retirement transfer match promotion attracting over $4 billion in retirement assets transferred from competing brokerage firms. International expansion remains a key element of Robinhood's growth strategy, with full availability in the United Kingdom in March 2024. Robinhood's 24-hour Market has extended trading access for customers, resulting in record overnight trading volumes.
However, Robinhood ( NASDAQ:HOOD ) faces potential risks and regulatory headwinds that could impact its future growth and profitability. Regulatory scrutiny, particularly regarding cryptocurrency trading operations, is a significant concern. The company's reliance on the Payment for Order Flow (PFOF) model presents a potential vulnerability, as regulatory changes or potential bans on PFOF could disrupt this revenue stream and necessitate adjustments to Robinhood's business model.
Market volatility poses a challenge for Robinhood ( NASDAQ:HOOD ), as fluctuations in asset prices and trading volumes can impact transaction-based revenues. The company must remain adaptable and responsive to changing market conditions to mitigate these risks and ensure sustainable growth.
Technical Outlook
Robinhood stock ( NASDAQ:HOOD ) is up 1.5% trading within the 50-day Moving Average (MA) with a Relative Strength Index (RSI) of 55.78 which is moderate and prime for further surge.
Strategic Insights for Robinhood Markets, Inc. (HOOD)As of the latest market close, Robinhood Markets, Inc. (HOOD) is trading at $17.30, down by 3.08% from the previous close. The stock exhibits significant volatility, reflected by the trading volume of 51.21 million shares, substantially higher than the average volume of 12.34 million over the past 30 days. The current market capitalization stands at $15.24 billion.
The Stochastic RSI indicates overbought conditions with a close at 89.79, suggesting potential for a price correction.
The Relative Strength Index (RSI) is neutral at 49.11, reflecting a balanced momentum with a slight bearish inclination.
The MACD level is 0.00, with the signal line slightly higher, indicating a bearish crossover. The histogram shows minor bearish momentum, suggesting caution for long positions in the short term.
The price is trading within the Ichimoku Cloud, indicating indecisiveness in the market. The future cloud is bearish, suggesting potential downward pressure in the coming sessions.
Current price is near the pivot point (P) at $17.70. Key support levels are at S1 ($15.25) and S2 ($14.01), while resistance levels are at R1 ($18.94) and R2 ($21.39).
The stock is trading near the 10-day EMA ($17.55) and the 20-day EMA ($17.57), both indicating a 'Sell' signal. Longer-term moving averages (50, 100, 200-day) suggest mixed signals with potential for a short-term decline.
CCI (20) is at -12.03, indicating that the stock is currently neither overbought nor oversold but is leaning towards the lower end of the neutral zone.
Momentum (10) is slightly positive at 0.18, but the Awesome Oscillator is negative at -0.12, suggesting weak bullish momentum that could reverse quickly.
Price Action and Patterns:
Recent price action shows a consolidation phase between $17.00 and $18.00. The stock has formed a descending triangle pattern, indicating potential bearish continuation if the price breaks below the support level of $17.00.
Over the past month, the stock has declined by 7.29%, while showing a substantial gain of 35.79% over the past six months, indicating a potential for profit-taking.
Earnings and Fundamental Indicators:
Next earnings report is in 82 days. Basic EPS (TTM) is 0.15, with a high P/E ratio of 122.68, suggesting the stock might be overvalued.
Long Position: Consider entering a long position if the price breaks above $18.94 (R1) with a target of $21.39 (R2) and a stop loss at $17.00 to manage downside risk.
Short Position: A short position could be viable if the price breaks below $17.00 with a target of $15.25 (S1) and a stop loss at $18.00.
Speculative Price Target:
Bullish Scenario: If bullish momentum prevails, a price target of $20.30 within the next quarter is feasible, representing a 17.34% increase from the current level.
Bearish Scenario: A breakdown below $17.00 could see the stock testing $14.01, a critical support level.
Given the mixed signals from technical indicators and the current market conditions, a cautious approach is recommended. Monitor the stock closely for a breakout above $18.94 for long positions or a breakdown below $17.00 for short positions. Use tight stop losses to mitigate risks given the current market volatility.
Long Position Stop Loss: $17.00
Short Position Stop Loss: $18.00
This analysis provides a balanced view with clear entry and exit points, aiming to assist traders in making informed decisions based on current technical conditions and market sentiment.
Robinhood Gain as Retail Trading Rebound Powers Record QuarterRobinhood shares ( NASDAQ:HOOD ) rose after the retail brokerage reported stronger-than-expected first-quarter results, with net income of $157 million, or 18 cents per share, and record revenue of $618 million. Cryptocurrency transactions accounted for $126 million in revenue in the quarter. The company's earnings per share and revenue numbers were both records for the firm, and the stock jumped more than 5% in after-hours trading. Robinhood ( NASDAQ:HOOD ) surged in popularity during the Covid-19 pandemic in 2020 and 2021, but has since seen user activity and revenue mirroring market action.
Regulatory uncertainty has clouded the future of the company's cryptocurrency business, with the U.S. Securities and Exchange Commission issuing a Wells Notice to the company, signaling potential legal enforcement action over the company's cryptocurrency business.
Robinhood's chief legal, compliance and corporate affairs officer, Dan Gallagher, expressed disappointment in the SEC's decision and believes that the crypto assets on its platform are not legally securities. The company reported a year-over-year increase in funded customers to 23.9 million and assets under custody to $129.6 billion.
5/8/24 - $hood - not much juice left into this print, caution5/8/24 - vrockstar - look guys i think the UX rocks, the 3% IRA carrot was genius and overall... this "is" a better way to do banking/ crypto/ trading. not going to short the stock, but a lot of this positive stuff is defn incorporated since last EPS where the stock ran nearly 100% and it's realistically "just" off it's highs. even if we assume 50c of EPS power, it's not growing 100% yoy so you're paying over 30x PE for this? Not my cup of tea. Where I struggle is that any less than stellar result in this tape are getting absolutely rekt and any beats are seeing retraces at the open, so at this valuation you need an absolutely SMASHING result and once again, the stock somewhat prices this in. I tend to think the risk reward is probably skewed more negatively here, so wanted to post a note for my own reference. i'd be a buyer back near that gap fill in the $12s. If we do see a pop on "good" but not "stellar" results - would be a good oppty to resize your risk here IMO, or sell some C's for IV.
HOOD need more volume to see any upside momemtHood may see 17.35 before it makes any further moment, this can happen either today or tomorrow after earnings very much careful it may be dumped like may others due to ongoing news.
SEC issues Robinhood Crypto with Wells NoticeRobinhood ( NASDAQ:HOOD ) Markets has received a Wells Notice from the U.S. Securities and Exchange Commission (SEC) citing alleged securities violations. The crypto unit of Robinhood Markets, Robinhood Crypto, received the notice on May 4. The SEC staff has made a preliminary determination to recommend an enforcement action against Robinhood Crypto, alleging securities violations. Robinhood Markets, Inc., ( NASDAQ:HOOD ) Chief Legal, Compliance and Corporate Affairs Officer, Dan Gallagher, expressed disappointment that the agency has decided to issue a Wells Notice related to their U.S. crypto business.
Last year, Robinhood ( NASDAQ:HOOD ) Markets said it had received an investigative subpoena from the SEC related to listings of cryptocurrencies. The SEC has previously targeted decentralized crypto exchanges like Uniswap and Coinbase, and Ethereum development studio Consensys. Consensys later moved to sue the SEC, arguing that regulating ether as a security would jeopardize the U.S.'s ability to use Ethereum and other blockchains. The implications of regulating ether as a security would extend beyond digital asset trading, jeopardizing the future of innovations, products, and U.S. jobs that the next generation of the Internet will unleash.
Robinhood BearishNASDAQ:HOOD Seems to have reached a local top and is due for a retest of the lower fin levels before picking upwards again. Expecting the stock to fall to 14$ (0.382) in the next 1 to 2 weeks.
RSI Divergence on the daily chart + overbought.
Potential downwards mouvement to MA line on 0.5 fib
📈🚀 Robinhood (HOOD) Growth Analysis 📊💰User Growth Momentum:
NASDAQ:HOOD demonstrates impressive user growth driven by strategic promotions and incentives, solidifying its position with 23.6 million funded accounts as of February.
Institutional Investor Appeal:
Initiatives like the 3% match on IRA contributions attract institutional investors, boosting assets under custody to $118.7 billion.
Revenue Diversification:
Subscription revenue, particularly from Gold membership, saw a 25% increase in Q4 and is expected to rise further with continued advertising and promotions.
Trade Projection:
Bullish stance above $14.50-$15.00.
Upside target of $28.00-$30.00 reflects potential growth and value appreciation as Robinhood expands its user base and revenue streams.
📈💡 Stay tuned for HOOD's growth trajectory! #Robinhood #FinancialIndustry 🚀📊
HOOD EARNINGS CHART, THE LITTLE FEATHER THAT COULDHood potential earnings chart.
I labeled the important stuff within the chart.
There is a big trend line that I don't think will hit because it takes price down to $3, which I guess is theoretically possible.
I think 8.45 is a more real price and if that price hits, it seems the price can get up to $13.
It can also go the other way, upside first to $13.
I drew a small guideline for a potential path, but there are many, focus on the price targets and trends.
And again, 8.45 is a really strong price support target.
Good luck.
Where my hood at part 2First idea was a banger, i like Hood a lot, i will like it a lot more when it test sport at the $15 level (green horizontal). This is timing up nicely with TD sequential as well.
HOOD Short: Peak reachedI just watched "Dumb Money" and I thought to look at Robinhood's chart. What I found tells me that Robinhood will probably not see above $20.55 for a long time to come. Avoid this stock.
