Robinhood trespasses resistance of downward trend line - Analysis - 16-05-2022

Robinhood Markets' stock (HOOD) rose in the intraday levels, marking a profit of 24.88%, or 2.13 points, and settling at 10.69, with trading volumes surpassing 48.5 million shares, above 10-day averages of 26.2 million shares, after reports that CEO of FTX Trading, Sam Bankman-Fried, acquired 7.6% of Robinhood's shares.

Many companies starting taking strict measures to contain inflationary pressures, with Robinhood deciding to let go of 9% of its workforce to improve operational efficiency. 

Technically, the stock managed to trespass the downward short-term trend line, with positive signals from the RSI, after reaching oversold levels, hinting at positive divergence, with the stock touching the resistance of the 50-day SMA.

Therefore we expect the stock to rise and target the resistance of 16.49, provided it holds above the pivotal support of 9.94. 

Expected trend for today: Bullish