Robinhood (HOOD): The hype is fading, and so is the stock

Gareth Soloway Verified Investing

Shares of Robinhood (HOOD) are weak. After an epic run of 422% from the April 7th, 2025 lows, HOOD may be on the verge of a fall to $120 per share. This is what the technical analysis is showing.

The two biggest bearish factors are the reversal engulfing candle on October 6th and the parallel channel that has kept price in check since that April 7th low. The reversal engulfing candle, a bearish reversal signal occurred at the high end of the parallel channel. Since then, even as the stock market has had rally days, HOOD has stayed weak.

Ultimately, price should sell to the low end of the parallel at $120 per share. Once there, investors will have to see if price bounces or breaks through.

HOOD has been one of the favorites of retail investors. However, the valuation is concerning when compared to other brokers that allow stock trading, crypto trading, and even allow bets on Polymarket. At some point, reality will likely set in, sending HOOD well below $100 per share.

The charts are bearish and the valuation metrics are extreme. Be careful on HOOD.

Author

Gareth Soloway

Verified Investing

A renowned trader and financial expert specializing in chart analysis and market insights.

EUR/USD holds on to 1.1800, down modestly for the day

EUR/USD is edging lower on Wednesday, hovering just above the 1.1800 mark as renewed upside momentum in the US Dollar weighs on the pair. Moving forward, the ECB is largely expected to keep its interest rate unchanged at its meeting on Thursday.

GBP/USD flirts with daily lows near 1.3640

GBP/USD is giving back Tuesday’s gains on Wednesday, facing renewed selling pressure and drifting towards the 1.3640 zone, or daily lows. The pullback comes as the Greenback picks up some decent traction, while investors position ahead of the BoE’s Super Thursday.

Gold stays offered below $5,000

Gold is back under pressure on Wednesday, slipping below the $5,000 mark per troy ounce as Wednesday’s session draws to a close. The pullback comes amid renewed strength in the US Dollar alongside mixed moves in US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP tick up despite macro uncertainty, retail exodus

Bitcoin rises above $76,000 following an extended decline to $72,946 the previous day as Fed-related headlines keep investors on edge. Ethereum advances toward the $2,300 hurdle amid low retail interest, with futures Open Interest falling to $26.3 billion.

Should investors abandon AI as software stocks slide?

AI is not being abandoned by markets. It is being priced more carefully. Over the past few weeks, the underperformance of software and SaaS stocks has sparked a familiar question: is the AI trade breaking down? The answer is no.

Ripple stabilizes amid mixed signals as ETF inflows resume despite low retail activity

Ripple hovers around the $1.60 pivotal level at the time of writing on Wednesday, reflecting stable but weak sentiment across the crypto market. Intense volatility triggered a brief sell-off on Tuesday, driving the remittance token to pick up liquidity at $1.53 before recovering to the current level.