Watch These Robinhood Worth Ranges as Inventory Hits 3-12 months Excessive After Improve

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

The funding financial institution, which lifted its value goal on the inventory to $55 from $24, stated a possible discount in cryptocurrency regulation by the incoming Trump administration units up an energetic retail buying and selling surroundings 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 for the reason that begin of the yr 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 essential value ranges price watching out for.

Overbought RSI Indicator

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

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

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

Essential Assist Ranges to Monitor

Upon an preliminary retracement, traders ought to preserve monitor of the $24 area. This space on the chart could entice shopping for curiosity close to the outstanding June and July peaks. Such a transfer would symbolize a decline of about 40% from this week’s excessive, the same proportion drop to the inventory’s summer time pullback.

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

Key Resistance Ranges to Watch

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

Lastly, a detailed above this stage could result in a check of the important thing $60 space. Traders 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 value 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.