Watch These Robinhood Price Levels as Stock Hits 3-Year High After Upgrade

Shares in Robinhood Markets (HOOD) will likely remain on investors’ radar screens Tuesday after Morgan Stanley upgraded the stock and significantly raised its price target, saying that the company sits well-positioned to benefit from the outcome of the U.S. presidential election.

The investment bank, which lifted its price target on the stock to $55 from $24, said a likely reduction in cryptocurrency regulation by the incoming Trump administration sets up an active retail trading environment in 2025. The bank added that a recovery in merger and acquisition activity, and more initial public offerings also supports an increase in revenue-generating activity.

Robinhood shares have nearly tripled since the start of the year as of Monday’s close, boosted by a recovery in trading revenues and the expansion of its product range. The stock gained more than 3% in Monday’s regular session, hitting a three-year high, before slipping 1.2% to $37.40 in after-hours trading.

Below, we break down the technicals on Robinhood’s weekly chart and identify important price levels worth watching out for.

Overbought RSI Indicator

After breaking out from a triple bottom in February, Robinhood shares have spent most of the year trending sharply higher apart from a brief retracement to the 50-week moving average (MA) and the pattern’s upper trendline during the early-August broad market sell-off.

While the relative strength index (RSI) confirms bullish price momentum with a reading above 70, the indicator also flashes overbought conditions in the stock, which could trigger short-term profit-taking.

Let’s look at several key support and resistance levels on Robinhood’s chart that investors may have their eyes on.

Important Support Levels to Monitor

Upon an initial retracement, investors should keep track of the $24 region. This area on the chart may attract buying interest near the prominent June and July peaks. Such a move would represent a decline of about 40% from this week’s high, a similar percentage drop to the stock’s summer pullback.

Selling below this level may see the shares revisit lower support around $20, an area on the chart where investors could seek entry points near the April swing high and upward sloping 50-week MA.

Key Resistance Levels to Watch

Ongoing bullish price momentum could see the shares initially rally up to around $45, a location on the chart where the price may run into overhead selling pressure near a minor countertrend peak that formed early in the stock’s steep downtrend between August 2021 and June 2022.

Finally, a close above this level may lead to a test of the key $60 area. Investors who have purchased the shares at lower prices could look to sell near the psychological round number, which also closely aligns with the stock’s high price on its third week of trading after going public in mid-2021.

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As of the date this article was written, the author does not own any of the above securities.