Robinhood Markets Inc. (NASDAQ:HOOD) shares are trading lower Thursday and continue to trend lower in what traders call a falling wedge pattern. Robinhood is set to report its fourth-quarter earnings after the market close today. Analyst estimates indicate the company is expected to report a loss of 42 cents per share and revenue is estimated to come in at $370.92 million.
Robinhood was down 5.72% at $11.70 late in Thursday afternoon trading.
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Robinhood Daily Chart Analysis
- The stock is nearing the point of what traders call a falling wedge pattern. The falling wedge pattern is considered a bullish reversal pattern, but only if the price can cross and hold above the pattern resistance.
- The stock trades below the 50-day moving average (green) and indicates bearish sentiment. This moving average may hold as an area of resistance in the future.
- The Relative Strength Index (RSI) continues to trend lower and now sits at 20. This shows that many sellers have been pushing into the stock. Sellers heavily outweigh the buyers in the stock and are looking to continue the bearish trend.
What’s Next For Robinhood?
Robinhood has had a bearish look for months as it continues to form lower highs and lower lows. The price has been getting condensed between these highs and lows and could see a turnaround if resistance can break and the price can hold above the level.
Bullish traders are looking for the resistance break and for the RSI to begin to form higher lows and climb out of the oversold region.
Bearish traders are in control of the stock and want to see the price continue to fall lower. Bears are looking to see the price cross below the pattern support for a possible strong bearish move to occur.
Photo courtesy of Robinhood.
