Robinhood (NASDAQ: HOOD): Big correction or trend change?

Robinhood Markets, Inc. (ticker symbol, NASDAQ: HOOD)  is a U.S.-based financial services company best known for its commission-free trading app, designed to make investing accessible to everyday retail traders. Founded in 2013, it has grown into a major fintech player with millions of users worldwide. Stock has dropped more than 50% since its October 2025 peak. In our last article, we noted the June 2022 cycle was close to ending and a pull back was expected. June 2022 cycle ended as expected in October 2025 but the subsequent pullback has been deeper than anticipated. Now, the question is whether this decline is simply a larger correction within the ongoing bullish cycle—or the start of a new bearish trend. Let’s take a look at what Elliott wave analysis says and potential area for a turn higher.

HOOD: Weekly Elliott Wave analysis: Wave (IV) pull back in progress

Wave (I) ended at 85, followed by Wave (II) which bottomed at 6.81. The rally then extended into Wave (III), peaking at 153.86. Currently, Wave (IV) is unfolding and could potentially complete within the 62.85–41.37 zone, which corresponds to the 61.8–76.4% Fibonacci retracement of the Wave (III) advance. Adding further weight to this area, the 161.8% Fibonacci extension of the a–b sequence comes in at 56.74, while the February 2025 peak sits at 66.91. This creates a strong confluence of Fibonacci retracement and extension levels, reinforced by a prior peak. Altogether, this cluster suggests that Wave.