Watch These Robinhood Price Levels as Stock Hits 3-Year High After Upgrade

Shares successful Robinhood Markets (HOOD) will apt stay connected investors’ radar screens Tuesday aft Morgan Stanley upgraded nan stock and importantly raised its price target, saying that nan institution sits well-positioned to use from nan result of nan U.S. statesmanlike election.

The finance bank, which lifted its value target connected nan banal to $55 from $24, said a apt simplification successful cryptocurrency regulation by nan incoming Trump management sets up an progressive unit trading situation successful 2025. The slope added that a betterment successful merger and acquisition activity, and much initial nationalist offerings besides supports an summation successful revenue-generating activity.

Robinhood shares person astir tripled since nan commencement of nan twelvemonth arsenic of Monday’s close, boosted by a betterment successful trading revenues and nan description of its merchandise range. The banal gained much than 3% successful Monday's regular session, hitting a three-year high, earlier slipping 1.2% to $37.40 successful after-hours trading.

Below, we break down nan technicals connected Robinhood’s weekly chart and place important value levels worthy watching retired for.

Overbought RSI Indicator

After breaking retired from a triple bottom successful February, Robinhood shares person spent astir of nan twelvemonth trending sharply higher isolated from a little retracement to nan 50-week moving mean (MA) and nan pattern’s precocious trendline during nan early-August wide marketplace sell-off.

While nan relative spot scale (RSI) confirms bullish value momentum pinch a reference supra 70, nan parameter besides flashes overbought conditions successful nan stock, which could trigger short-term profit-taking.

Let’s look astatine respective cardinal support and resistance levels connected Robinhood’s floor plan that investors whitethorn person their eyes on.

Important Support Levels to Monitor

Upon an first retracement, investors should support way of nan $24 region. This area connected nan floor plan whitethorn pull buying liking adjacent nan salient June and July peaks. Such a move would correspond a diminution of astir 40% from this week’s high, a akin percent driblet to nan stock’s summertime pullback.

Selling beneath this level whitethorn spot nan shares revisit little support astir $20, an area connected nan floor plan wherever investors could activity entry points adjacent nan April swing high and upward sloping 50-week MA.

Key Resistance Levels to Watch

Ongoing bullish value momentum could spot nan shares initially rally up to astir $45, a location connected nan floor plan wherever nan value whitethorn tally into overhead trading unit adjacent a insignificant countertrend highest that formed early successful nan stock’s steep downtrend betwixt August 2021 and June 2022.

Finally, a adjacent supra this level whitethorn lead to a trial of nan cardinal $60 area. Investors who person purchased nan shares astatine little prices could look to waste adjacent nan psychological information number, which besides intimately aligns pinch nan stock’s precocious value connected its 3rd week of trading aft going public successful mid-2021.

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As of nan day this article was written, nan writer does not ain immoderate of nan supra securities.