Watch These Robinhood Value Ranges as Inventory Hits 3-Yr Excessive After Improve

Shares in Robinhood Markets (HOOD) will possible stay on buyers’ radar screens Tuesday after Morgan Stanley upgraded the inventory and considerably raised its worth goal, saying that the corporate sits well-positioned to learn from the end result of the U.S. presidential election.

The funding financial institution, which lifted its worth goal on the inventory to $55 from $24, mentioned a probable discount in cryptocurrency regulation by the incoming Trump administration units up an lively retail buying and selling setting in 2025. The financial institution added {that a} restoration in merger and acquisition exercise, and extra preliminary public choices additionally helps a rise in revenue-generating exercise.

Robinhood shares have almost tripled because the begin of the 12 months as of Monday’s shut, boosted by a restoration in buying and selling revenues and the growth of its product vary. The inventory gained greater than 3% in Monday’s common session, hitting a three-year excessive, earlier than slipping 1.2% to $37.40 in after-hours buying and selling.

Beneath, we break down the technicals on Robinhood’s weekly chart and determine vital worth ranges value watching out for.

Overbought RSI Indicator

After breaking out from a triple backside in February, Robinhood shares have spent a lot of the 12 months trending sharply increased other than a quick retracement to the 50-week shifting common (MA) and the sample’s higher trendline throughout the early-August broad market sell-off.

Whereas the relative power index (RSI) confirms bullish worth momentum with a studying above 70, the indicator additionally flashes overbought circumstances within the inventory, which may set off short-term profit-taking.

Let’s take a look at a number of key assist and resistance ranges on Robinhood’s chart that buyers could have their eyes on.

Essential Help Ranges to Monitor

Upon an preliminary retracement, buyers ought to maintain observe of the $24 area. This space on the chart could appeal to shopping for curiosity close to the distinguished June and July peaks. Such a transfer would signify a decline of about 40% from this week’s excessive, the same share drop to the inventory’s summer season pullback.

Promoting under this stage may even see the shares revisit decrease assist round $20, an space on the chart the place buyers may search entry factors close to the April swing excessive and upward sloping 50-week MA.

Key Resistance Ranges to Watch

Ongoing bullish worth momentum may see the shares initially rally as much as round $45, a location on the chart the place the worth could run into overhead promoting stress close to a minor countertrend peak that fashioned early within the inventory’s steep downtrend between August 2021 and June 2022.

Lastly, an in depth above this stage could result in a take a look at of the important thing $60 space. Buyers who’ve bought the shares at decrease costs may look to promote close to the psychological spherical quantity, which additionally intently aligns with the inventory’s excessive worth on its third week of buying and selling after going public in mid-2021.

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As of the date this text was written, the writer doesn’t personal any of the above securities.