#Robinhood #Price #Levels #Watch #Stock #Drops #Promotion #Revenue
Key takeaways
- Robinhood shares fell Thursday after the online brokerage failed to meet Wall Street’s quarterly revenue expectations due to a customer promotion program.
- The stock broke above the upper trend line of the ascending triangle earlier this month, though recent upward price momentum stalled following the company’s third-quarter results.
- Investors should monitor important support levels on the Robinhood chart around $24, $22, and $20.50.
- The measuring principle, which calculates the depth of an ascending triangle near its widest section and adds that amount to the breakout point of the pattern, predicts an upside target for the stock at $31.50.
Shares in Robinhood Markets (HOOD) fell Thursday after the online brokerage failed to meet Wall Street’s quarterly revenue expectations due to a customer promotion program.
The company, which reported third-quarter revenue of $637 million, below the consensus estimate of $653.1 million from analysts surveyed by Visible Alpha, said revenue fell by $27 million in the period “due to matches paid to customers on transfers and deposits.”
Robinhood shares were down 17% at about $23.50 in late trading Thursday. Despite the decline, the stock is up 85% year-to-date, helped by a rebound in retail trading volumes and the recent announcement of new products at the HOOD Summit 2024 event.
Below, we analyze the Robinhood chart and use technical analysis to identify important post-earnings price levels to pay attention to.
The upward momentum stops
Since breaking above the upper trend line of the ascending triangle earlier this month, Robinhood shares have continued to track higher ahead of the company’s quarterly report.
However, the price’s recent upward momentum stalled on Thursday, as the stock gave up three weeks of gains.
Let’s point out three key support levels that investors might watch and project a chart-based upside price target to monitor if the stock rebounds.
Watch these important support levels
First, it’s worth keeping an eye on the $24 level, a location on the chart where stocks could attract buying interest near the upper trend line of the ascending triangle. This area, which provided resistance on several occasions between June and September, may now turn into a major support area.
Failure of the bulls to defend this area could see shares fall to around $22, where the price may face support from a horizontal line connecting a group of similar trading levels on the chart from late May to early October.
Further downside movement could lead to a move down to the $20.50 area. Investors may look for entry points near the trend line at this level, which connects the March high with a series of price movements between May and September.
Upside price target to watch
If Robinhood shares make a rebound, investors can predict a potential upside price target using the scaling principle, a technique that analyzes past price movements to anticipate future ones.
In this case, we calculate the depth of the ascending triangle near its widest section and add this amount to the breakout point of the pattern. For example, we add $7.50 to $24, which predicts a target of $31.50, an area where investors may decide to take profits.
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As of the date of writing this article, the author does not own any of the securities mentioned above.
#Robinhood #Price #Levels #Watch #Stock #Drops #Promotion #Revenue
