Robinhood Markets, Inc HOOD was trading lower on Tuesday after surging 15% higher on Monday between about 2:55 p.m. and 3:10 p.m. to close the trading day 14% higher.
At about 3 p.m. Monday, the stock was halted due to volatility, which was caused by a report that speculated FTX may be looking to acquire the trading platform and financial services company.
FTX, a Bahamian cryptocurrency exchange, responded to the report to say it had no “intention of taking any action toward changing or influencing the control of the issuer,” despite FTX CEO and co-founder Sam Bankman-Fried holding a 7.6% stake in Robinhood.
On Tuesday morning, Deutsche Bank analyst Brian Bedell maintained a Hold rating on Robinhood and lowered the price target from $10 to $9.
Goldman Sachs analyst Will Nance weighed in on Monday, upgrading the stock from Sell to Neutral and reducing the price target from $11.50 to $9.50.
The initial news of the acquisition caused shares of Coinbase Global, Inc COIN, viewed by some as the more likely possible Robinhood acquirer, to plunge over 6% on Monday and an addition 9% on Tuesday. In comparison, Robinhood was holding up rather well.
Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial.
The Robinhood Chart: On Tuesday, Robinhood was settling into an inside bar pattern, with all of the price action taking place near the upper end of Monday’s mother bar. The inside bar leans bullish because Robinhood was trading higher before the consolidation took place.
- Traders can watch for a break up or down from Monday’s mother bar on Wednesday to gauge future direction. The pattern will hold more weight if the break is made on higher-than-average volume on smaller time frames.
- Robinhood is also trading in an uptrend pattern, with the most recent higher low printed on June 22 at $7.28 and the most recent higher high formed on Monday at $9.72. If the stock falls further over the coming days, bullish traders can watch for Robinhood to print a reversal candlestick, such as a doji or hammer candlestick, above the $7.30 level for a possible entry point.
- On Tuesday, Robinhood attempted to regain support at the 50-day simple moving average but failed and wicked from the level. The eight-day and 21-day exponential moving averages (EMAs) are trending slightly below the share price, however, which may act as support if Robinhood drops further. If Robinhood is able to remain above the EMAs, the eight-day EMA will soon cross above the 21-day, which would give bullish traders more confidence going forward.
- Robinhood has resistance above at $9.94 and $12.77 and support below at $7.71 and $7.28.
Photo via Shutterstock.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.
All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.
Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.
Rate collection and criteria: Click here for more information on rate collection and criteria.