Robinhood stock price jumped today, July 1, reaching its highest level since June 18. HOOD has jumped by 70% from its lowest level this year, and this rally may continue as the first golden cross pattern since 2023 approaches and as analysts turn bullish.
Robinhood Stock is About to Form First Golden Cross in 3 Years
A golden cross is one of the most common bullish patterns in technical analysis. It typically forms when the 50-day Exponential Moving Average (EMA) rises and crosses above the 200-day EMA. It normally signals that an asset has bullish momentum.
HOOD stock price is about to form a golden cross, with the spread between the two averages narrowing. The 50-day EMA sits at $89.50, while the 200-day EMA has moved to $90.10, suggesting a crossover may occur soon.
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Robinhood formed this pattern the last time in 2023, when it was trading at $13. After that, it moved into a multi-year bull run that pushed it to a record high of $153. It has also retested the crucial support level of $93, its highest swing on April 17. This is known as a break-and-retest pattern, a common bullish sign in technical analysis.
Therefore, there is a possibility that the stock will continue to rise, potentially reaching an all-time high of $153, up 40% from the current level. This view will become invalid if it drops below the key support level of $93.45.
Wall Street Pros are Turning Bullish on HOOD Shares
Top Wall Street analysts are turning bullish on Robinhood, which they see as a rare gem. Deutsche Bank’s Brian Bedell boosted his target from $105 to $113, while Goldman Sachs’ James Yaro hiked it from $108 to $121. BTIG hiked the target to $125, while Loop Capital boosted the view to $110.
The view is that the company’s business will continue to thrive in the coming months due to surging volume. For example, the US recently ended the Pattern Day Trader (PDT) rule, meaning that it will see more volume from small traders.
Robinhood has also become one of the most innovative companies in the financial services industry. It has launched so many products that resonate with ordinary people. For example, it is now offering advanced dividends, allowing shareholders to book their payouts earlier than when a company pays them.
The company also launched a wealth management solution late last year that has accumulated over $2 billion in assets. Also, it has become a major player in the predictions industry, especially during the ongoing World Cup.
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