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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Stay tuned for more updates on HOOD in the near future.
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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.
