Robinhood stock price jumped to a multi-month high of $120 last week, helped by bullish analysts’ forecasts. At its peak, HOOD was up by over 85% from its lowest level this year. This rally may continue in the near term, helped by the forming golden cross pattern.
Robinhood Stock Price Has Formed a Golden Cross
Technicals are sending mixed signals on Robinhood stock. On the negative side, the stock has formed a doji candlestick, suggesting a short-term reversal.
On the positive side, HOOD stock has just formed a golden cross, a common pattern that occurs when the 50-day and 200-day Exponential Moving Averages (EMAs) cross. This pattern is a common bullish continuation signal in technical analysis, indicating that bulls have taken over.
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Robinhood has moved above the Ichimoku Cloud and the Supertrend indicators. It also jumped above the crucial resistance level of $92.73, its highest level on April 17. It then retested it on June 25, confirming the bullish continuation sign.
Given the doji candlestick pattern, the stock may retreat to $100 and then resume the uptrend. If this happens, the stock will likely retest the all-time high of $154 by the end of the year. This target is about 35% above the current level.
On the negative side, a drop below the key support level of $95 will invalidate the bullish outlook.
Robinhood Has Some Major Catalysts Ahead
Several potential catalysts will drive HOOD shares upwards in the coming months. First, there are signs that crypto prices have started to bottom this month, with Bitcoin rising from $58,000 to $62,000. A sustained recovery in the crypto market would be bullish for the company, as it has become a major player in the industry.
Second, the company is benefiting from the soaring trading volume in the United States. A report released last week showed that its equity trading volume jumped to $343 billion last month. It also executed over 274 options contracts. This growth will continue after US regulators ended the Pattern Day Trader (PDT) rules.
Third, analysts are highly bullish on the company. Mizuho’s Dan Dolev hiked his outlook for the company from $115 to $130, while BTIG boosted it to $125. Deutsche Bank and Goldman Sachs raised their targets to $113 and $121, respectively.
Additionally, the company will likely report better-than-expected results later this month. The average estimate among analysts is that its revenue jumped by 22.6% in the second quarter to over $1.21 billion. For the year, analysts expect its revenue to be $5 billion.
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